Audit, Reporting and Governance Authority (ARGA) meaning

Government issues policy paper backing its Modern Industrial Strategy What is the impact on corporate law? The government’s Modern Industrial Strategy and the Professional and Business Services Sector Plan, both released on 23 June 2025, place a core emphasis on economic expansion and industrial revival. They also indicate a stronger commitment to ESG principles, enhanced corporate governance and regulatory overhaul—most notably via the much‑awaited shift from the Financial Reporting Council (FRC) to the Audit, Reporting and Governance Authority (ARGA). The papers set out several regulatory measures that, while not aimed squarely at equity capital markets (ECM) reform, are intended to widen access to equity funding and deepen the UK’s capital markets. ARGA—from proposal to implementation Initially mooted following the 2018 Kingman Review, ARGA is poised to become the UK’s new statutory watchdog for audit and corporate governance, supplanting the FRC. The 2025 strategy underscores ARGA’s pivotal role and proposes a staged roll‑out, yet it refrains from fixing a definitive launch date. ARGA will be vested with...

Audit Reform and Corporate Governance Bill After lengthy delays, the draft Audit Reform and Corporate Governance Bill proposes scrapping the Financial Reporting Council (FRC) and creating a stronger watchdog, the Audit, Reporting and Governance Authority (ARGA), intended to prevent major corporate collapses. It featured in the King’s Speech in the House of Lords during the state opening of Parliament. On 17 July 2024, the FRC said it would collaborate with the Department for Business and Trade on the draft law, conceding there are ‘serious gaps in the regulatory toolkit’ that have needed reform for a long time. Richard Moriarty, the chief executive of the reporting council, warned that without these changes the regulator is akin to a sheriff for only half the county, working with powers that are too weak. Notable shortcomings under the FRC driving the draft legislation include the collapse of construction firm Carillion, which resulted in a £14.4m fine...

A Term Explanation AIC Corporate Governance Code (AIC Code) The corporate governance code published by the Association of Investment Companies sets out a best‑practice framework for the governance of closed‑ended investment companies whose shares are traded on public markets. AIM company/AIM companies A company with a class of securities admitted to AIM, the market operated by London Stock Exchange plc. Association of British Insurers (ABI) A trade association representing the UK insurance industry with a focus on corporate governance; following its June 2014 merger with ABI Investment Affairs, the Investment Association (IA) assumed responsibility for the corporate governance guidance previously issued by the ABI. Association of Investment Companies (AIC) A membership organisation representing a broad spectrum of investment companies, investment trusts, venture capital trusts and other closed‑ended funds. Audit, Reporting and Governance Authority (ARGA) A new, independent regulator not yet in place, recommended by the Kingman Review to replace the Financial Reporting Council. Its recommended purpose is to protect investors’ interests and the...