Is audit quality good enough? In large part that must depend on how well firms that carry out audits are run, and the Financial Reporting Council has opened a consultation on its governance code for such firms. The Audit Firm Governance Code dates to 2010, when the FRC introduced it to address audit problems from […]
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Tag Archives: governance
Who wins from ‘adjusting’ earnings per share? Time for some rules.
March 3, 2015 
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Most companies in this results season are delivering reassuring updates, but can investors trust the numbers? Tesco’s issues have not only rattled its own shareholders; across the market, analysts wonder how widespread accounting concerns might be. Growth is scarce, and CEOs are under pressure to deliver. This has put more emphasis on presentation; but recent […]
Continue reading Why do the biggest companies disappoint on governance?
October 16, 2014 0 Comments
Tesco’s high profile failure reveals the interaction between incentives, failed strategy and governance. Unfortunately, despite hiring what should be the best non-executives, the record shows the biggest companies have more governance blow-ups. What is it about the way that big businesses operate that makes them more accident-prone, not less? Even the investors lucky enough not […]
Continue readingWhen governance fails; why whistle-blowers are necessary
July 23, 2013 0 Comments
Whistleblowing is back on the regulatory agenda. Last month, new UK legislation came into force to encourage disclosure. At the same time, the Parliamentary Commission on Banking Standards Report highlighted that it does not happen often enough. Where governance fails, whistleblowing has a key role in exposing wrongdoing in banks and other organisations. Regulators need […]
Continue readingKey themes from the Final Report of UK Parliamentary Commission on Banking Standards
June 18, 2013 0 Comments
A global financial sector within a medium-sized economy A comprehensive report, for the most part well argued and with some practical proposals for improving banking. But in some parts the Commission seems to go beyond its remit, and sets out some ideas that would be hard to implement, or could conflict with existing initiatives. RBS […]
Continue readingBank downgrades are a challenge for Trustees & Treasurers
June 12, 2013 0 Comments
The UK’s Co-operative Bank has moved quickly to repair its management and governance after ratings agency, Fitch, downgraded the Banks’s debt last month. Its bonds, PIBS and preference shares have fallen, with expectation of a write down or bail-in involving those lenders, but not depositors. The Bank has reassured investors that capital currently exceeds regulatory […]
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Behavioural Edge 
Why was Volkswagen in ESG and Sustainable Investing Funds?
Responsible investing must come clean about Volkswagen. Too many funds rated it highly on Environmental, Social and Governance (ESG). Collateral damage will run well beyond the car sector. Already, the scandal has tarnished the brands of Volkswagen and Germany, with their reputations for trust and engineering excellence. But it is not just about mis-selling cars. […]
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