The Financial Reporting Council (FRC) has published updated guidance to support the revised 2024 UK Corporate Governance Code, which will apply to financial years beginning on or after 1 January 2025 (see our blog post for more details).
The updated guidance combines and replaces the three separate FRC guidance notes which accompany the 2018 edition of the Governance Code, namely the Guidance on Board Effectiveness, the Guidance on Audit Committees and the Guidance on Risk Management, Internal Control and Related Financial and Business Reporting.
The updated guidance follows the order of the 2024 Governance Code and includes questions for the board to consider when applying the Code. It also links to other materials for the board to refer to, including the CGI terms of reference for board committees (see above) and other FRC publications, including the guidance on the strategic report. The guidance includes commentary on the enhanced disclosures which the board will need to include in annual reports for financial years beginning on or after 1 January 2026 in relation to the effectiveness of the company's risk management and internal control framework.
Our snapshot on the changes under the 2024 Governance Code is available here.
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