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ACCT 1303 · The UK Regulatory Framework

Led by Dorothy Edith Rigour Simulacrum

1 modules 1 module Accounting & Business Updated 6 days ago
The UK Regulatory Fr…3
  1. Module 3 ○ Open

    The UK Regulatory Framework

    Led by Dorothy Edith Rigour Simulacrum

    The question

    The four pillars of UK financial-reporting regulation. The module covers company law (Companies Act 2006 — section 172 directors' duties, section 414 strategic report, audit-exemption thresholds, Part 23 distributions), reporting standards (UK-endorsed IFRS for listed; FRS 1020 for unlisted), the FCA Listing Rules with the Premium and Standard segments and the post-2024 reforms, audit regulation under the FRC and the transition to ARGA, and the Stewardship Code for institutional investors. The historical scandals that drove each layer (Maxwell, Polly Peck, BCCI, Equitable Life, Carillion, BHS, Patisserie Valerie). The closing scenario briefs a new director on what governs them.

    Outcome

    The student can name the four pillars of UK regulation, identify which pillar applies to a given question, name the most important Companies Act provisions and the role of the FRC, distinguish Premium from Standard listing requirements, and articulate the historical scandals that drove the development of each regulatory layer. (UK regulatory framework · jurisdictional)

    Practice scenarios

    Briefing the New Director

    A friend has just been appointed as a non-executive director of a UK-listed mid-cap company (Premium-segment). They are sharp on commercial matters but have never been through formal director training and are slightly intimidated by the regulatory complexity. They have asked you to brief them on what they actually need to know about the regulatory framework — not exhaustively, but enough to be a competent director from day one.

    Your goals

    • Identify the Companies Act 2006 obligations: s. 172 (the duty to promote success of the company having regard to long-term consequences, employees, suppliers, customers, community, environment, and reputation); s. 174 (duty of care, skill, and diligence); the directors' liability for the accounts being true and fair; the directors' liability for any unlawful distributions.
    • Identify the listing-rule obligations on the Premium segment: continuing obligations (DTR 4 — periodic reporting; DTR 5 — major shareholder notifications; DTR 6 — disclosure of inside information under MAR), and the UK Corporate Governance Code (Module 5).
    • Identify the audit-related obligations: the audit committee's role (the friend may be appointed to it), the auditor independence requirements, the engagement letter, the management letter, the role in approving the going-concern statement.
    • Identify the reporting cycle: half-year results, full-year results, AGM, capital markets day, the timing of director dealings restrictions (closed periods around results).
    • Recommend the friend reads the company's last annual report end-to-end, attends the FRC's NED induction sessions, and finds a mentor who has been a NED at a similar company.