September 2009

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In our Spring 09 edition of Reach Out, we reported on the FRC’s Review of the Combined Code on Corporate Governance. We raised clients’ awareness of the call for evidence for the first phase of this consultation process, to enable them to submit their views on a number of key areas.


The FRC has published a progress report on the first consultation stage, which considers the responses received to date and also assesses the recommendations in light of the recent consultation paper issued by Sir David Walker in his review of the governance practices of banks and other financial institutions. From feedback gained so far, there is a belief that the Combined Code and its predecessors have contributed to improvements in governance standards as a whole. Responses also reveal a clear preference for retaining the current principles based approach of the Code, "soft law underpinned by some regulation", as this is believed to be better able to react to evolving best practice.

The FRC progress report into the Review summarises the key areas of the Code identified as requiring amendment. To view the full report, visit www.frc.org.uk/corporate/reviewCombined.cfm.

For a synopsis of the items being considered in this second consultation phase, download our 'Consultation Agenda'.

Companies are invited to submit their views regarding these items by 9th October 2009.