Audit Reform Bill Abandoned: Corporate Reporting Authority to Replace FRC
Audit Reform Bill formally scrapped (20 Jan 2026). ARGA will not replace FRC; large private companies remain lightly regulated. Modernising Corporate Reporting consultation forthcoming.
The Department for Business and Trade formally confirmed that the Audit Reform and Corporate Governance Bill will not proceed. The Bill would have replaced the FRC with ARGA and expanded regulation to large private companies. The government cited administrative burden reduction as the primary rationale.
Instead, the FRC will be placed on a "proper statutory footing" and renamed the Corporate Reporting Authority (CRA). Large private companies will retain their current reporting exemptions. A Modernising Corporate Reporting consultation is now the priority.
WHAT YOU NEED TO DO
Remove assumptions about ARGA powers or expanded PIE definitions from governance planning. Monitor DBT and FRC websites for the Modernising Corporate Reporting consultation. FTSE 350 companies should monitor the CMA's audit remedies review for implications on auditor tender obligations.