Audit, Reporting and Governance Authority
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Lord Leong (Lab)
I thank my noble friend for the question. As we know, the UK has certain accounting standards, such as GAAP and the international financial reporting standards. These standards are non-mandatory. However, the Companies Act is very clear that a true and fair view of the accounts must be stated. That is a very high standard, but it is up to the individual or the committee of the company as to what should be reported in the accounts. This new Bill will set much higher standards for companies to abide by.
Lord Sharpe of Epsom (Con)
My Lords, can the Government provide assurances that the powers granted to ARGA will not create an overly burdensome regulatory environment that discourages investment in the UK?
Lord Leong (Lab)
The noble Lord makes a very good point. At the end of the day, we would like any regulator to perform the work but not to overburden SMEs or, for that matter, to stifle growth, which is the Government’s number one priority.
Lord Leong (Lab)
I thank my noble friend for that question and for all the work he has done in the actuarial sector itself. Let us not get ahead of ourselves. The Government are committed to publishing a draft Bill in this Session of Parliament. Until such time, it is important that we do not pre-empt the contents of the Bill.
Baroness Neville-Rolfe (Con)
My Lords, the Chancellor has written to other regulators encouraging them to look at ways to help the economy to grow and be more competitive. What are the plans in this area for encouraging growth and competitiveness?
Lord Leong (Lab)
The noble Baroness makes a very good point. It is important that, whichever regulator we have, it is effective. Currently, the regulator has some weaknesses in its powers; the new regulator will, I hope, address those weaknesses. It is important that, when anyone looks at the accounts, investors have confidence to make investment decisions. That will drive business and growth.