Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what plans, if any, they have to prevent individuals associated with auditing firms fined by the Financial Reporting Council from sitting on the UK Endorsement Board.

The Chair and members of the UK Endorsement Board (UKEB) are appointed, following a fair and open recruitment process, in line with the Cabinet Office’s Governance Code for Public Appointments. Recruitment also follows criteria set by the Secretary of State in the Terms of Reference covering diversity of knowledge and skills. Due diligence checks are also carried out on all proposed Board members to ensure the appropriateness of their appointment. The UKEB members are appointed in their individual capacity, are required to act independently, and in the UK long-term public good. This entails not showing preference to special interests and/or any employing entity and professional, sectoral or organisational affiliations. UKEB Board members are required to complete a Register of Interests, available on the UKEB website.

The Financial Reporting Council (FRC) is responsible for the public oversight of statutory auditors, including investigation and sanctioning in relation to the statutory audits of Public Interest Entities and certain other entities. The FRC also provides a voluntary independent investigation and discipline scheme for matters relating to the accountancy or actuarial professions which raise important issues affecting the public interest.