The Financial Reporting Council (FRC) has published two thematic reviews to enhance UK company reporting, focusing on share-based payment arrangements and investment company disclosures. The reviews emphasise the need for clarity and consistency, particularly where judgement and complex valuation models are required. The share-based payment review assessed application of IFRS 2, noting variable disclosure quality and some inconsistencies. The investment companies review examined reporting by trusts and closed-ended entities, identifying recurring issues with Level 3 fair value measurements and recommending improved quantification of significant inputs and sensitivities. Both reviews aim to strengthen disclosure practices and bolster investor confidence in UK financial reporting.

The Financial Reporting Council (FRC) has published a report outlining key findings and good practice identified during the 2023/24 and 2024/25 inspection cycles of the twelve largest audit firms. The report reflects the FRC’s commitment to transparency and improvement, aiming to help audit firms assess their risks and audit methodologies, learn from others, and adopt practices to enhance audit effectiveness and quality. FRC Executive Director of Supervision, Anthony Barrett, emphasised the crucial role audits play in fostering trust and transparency in financial reporting, supporting the UK’s economic status, and maintaining audit quality without disproportionate barriers.

Our Lawyers Liability & Regulatory Update highlights the last month's key developments affecting lawyers and the professional risks they face. In our October edition, we discuss:

• Troubling High Court judgment alarms legal profession
• Bar Council demands investigation into HMCTS evidence system failures
• CLC Compensation fund
• Changes to the UK Anti-Money Laundering Supervisory Regime
• Complying with Principle 6 - encouraging equality, diversity and inclusion
• Costs orders on applications by King's Counsel for ad hoc admission in Hong Kong.

The Serious Fraud Office (SFO) has published significant new guidance on how, when and why, it evaluates corporate compliance programmes, offering important insight for companies when implementing and operating their financial crime controls. In our recent blog we discuss the new guidance and its implications for businesses.

The government has opened consultation on its proposals to reform the supervision of anti-money laundering and counter-terrorist financing (AML/CTF) compliance among professional services businesses. Following consultation in 2023, its proposed that the Financial Conduct Authority (FCA) should take over responsibility for AML/CTF supervision from the current regime of 22 private sector Professional Body Supervisors (PBSs), as well as certain aspects of His Majesty’s Revenue and Customs’ (HMRC) AML/CTF role; the FCA will oversee legal, accountancy, and trust and company service providers’ compliance with the Money Laundering Regulations (MLRs), but will not be responsible for wider professional standards in these sectors. The consultation is open until 24 December 2025.

Our Lawyers Liability & Regulatory Update highlights the last month's key developments affecting lawyers and the professional risks they face. In our November edition, we discuss:

• SRA Thematic Review: navigating complaints and supporting vulnerable clients
• The FCA's new role in supervising lawyers' AML – further details emerge
• LSB intervention following SSB Collapse
• Renters’ Rights Act: enhanced security for tenants
• Public access to court documents: new rules
• Hong Kong – Distribution of client account balances following forced closure of law firm.