Europe: Q & A on the new statutory audit framework

The European Commission has published a series of questions and answers in respect of the new statutory audit framework (Directive 2014/56/EU and Regulation (EU) No 537/2014): see here (pdf).

USA: OCC publishes risk governance framework guidelines

The Office of the Comptroller of the Currency yesterday published final guidelines to strengthen the governance and risk management practices of certain large financial institutions: see here (pdf). The guidelines provide that institutions should establish and adhere to a written risk governance framework to manage and control risk-taking activities; they also provide minimum standards regarding institutions’ boards of directors in respect of the oversight of the risk governance framework.

UK: the failure to prevent economic crimes - new corporate offence being considered

Today's Financial Times newspaper reports comments made by the Attorney General, the Rt Hon Jeremy Wright QC MP, at the Cambridge International Symposium on Economic Crime. According to the report, the UK Government is considering the introduction of a new corporate offence, modelled on section 7 of the Bribery Act 2010: the failure to prevent economic crimes such as money laundering and fraud. The report is available here.

UK: Scotland: section 1032 of the Companies Act 2006 and restoration to the register

The operation of section 1032 ("Effect of court order for restoration to the register") of the Companies Act 2006 was considered by Sheriff Principal Scott QC last month in ELB Securities Ltd v Alan Love and Prestwick Hotels Ltd. 2014 SCGLA 46. The Sheriff Principal held that the effect of section 1032 was that not all matters reverted to the status quo pre-dissolution; he stated (para. [29]):

"For section 1032(1) to be construed such that it gives rise to an unqualified reversion to the status quo, one would require to ignore or treat as pro non scripto the preceding sections 1021 and 1022 along with the provisions of the succeeding section 1034. In this regard the maxim generalibus specialia derogant must, in my view, apply".

UK: BIS and FRC consult on accounting framework changes

The Department for Business, Innovation and Skills has published a consultation paper in respect of the UK's implementation of chapters one to nine of the EU Accounting Directive 2013/34/EU: see here (pdf). The paper also seeks views on changes to the UK accounting regime in response to issues raised during the Company and Commercial Law Red Tape Challenge.

The Financial Reporting Council has also published a consultation paper, to accompany the BIS paper, concerning accounting standards for small entities: see here (pdf).