UK Corporate Governance Code 2024: Provision 29 Internal Controls Declaration Now in Force
Provision 29 of UK Corporate Governance Code 2024 now in force for FY commencing 1 January 2026. Boards must test and declare internal control effectiveness; first declarations due early 2027.
The FRC brought its 2024 update to the UK Corporate Governance Code into effect on 1 January 2026, introducing Provision 29. This mandates that boards of premium-listed companies declare the effectiveness of their material internal controls and describe the scope of monitoring undertaken throughout the financial year.
Although first formal declarations will appear in annual reports for FY2026 (published early 2027), the governance work must begin immediately. The ICAEW has flagged Provision 29 as potentially the single most significant governance preparation requirement for UK-listed boards in 2026.
WHAT YOU NEED TO DO
Establish a cross-functional working group to map material internal controls. Define materiality criteria clearly. Develop a testing plan for 2026 to generate sufficient evidence. Brief audit committee and update terms of reference. Establish quarterly reporting to the board on control testing results.