The Financial Reporting Council has published the updated UK Corporate Governance Code, which will come into effect from 1 January 2025 or, in the case of new Provision 29 on internal controls, 1 January 2026.
The structure of the Code is largely unchanged and, as the FRC advised on 7 November, does not carry forward a number of the original proposals on which the FRC consulted over the Summer.
A new Principle has been included to encourage companies to report on outcomes and activities. A number of provisions have been removed related to Audit Committees as these provisions are now within the Audit Committees and the External Audit: Minimum Standard.
The principal changes are those around internal controls. In particular, Principle O and a new Provision 29, effective from 1 January 2026, which asks boards to make a declaration in relation to the effectiveness of their material internal controls.