UK Government Abandons Long-Planned Audit Reform Bill

Summary

The UK government has scrapped the Audit Reform and Corporate Governance Bill, ending a decade of debate sparked by corporate failures like Carillion and BHS. The proposed legislation would have replaced the Financial Reporting Council with a new statutory regulator (ARGA), expanded public‑interest entity definitions, and imposed stricter duties on directors and audit competition. Reform supporters lament the loss, arguing it leaves audit quality and board accountability unaddressed, while business groups welcome the avoidance of added regulatory costs. The FRC will continue operating without the enhanced statutory powers originally envisioned, though some reforms may still be pursued through guidance.