Corporate fiduciary comes under the spotlight

Corporate fiduciary is the subject of a recent discussion paper released by the Financial Services Authority (FSA) and Financial Reporting Council (FRC).

The report recommends enhanced auditor regulation of corporate banking, including reporting and assurance support, in order to improve public confidence in the sector.

Management bias and a ’sufficiently sceptical’ approach were among the focuses of the report, which seeks to rebuild faith in corporate fiduciary in the wake of the recession.

Paul Sharma, director of prudential policy for FSA, said the industry had ’learnt the lessons of the financial crisis’ and suggested the auditing sector should demonstrate similar advancement.

The organisation has regulated UK financial services since 2001 and is supported by the FRC, focusing on the promotion of strong corporate governance and accountability.

Hoping to stimulate debate on the role of auditors in financial regulation, the paper explores how bodies can work together to further economic stability and consumer protection. ADNFCR-2318-ID-19868315-ADNFCR