Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether any members of staff supporting the work of the UK Endorsement Board have previously worked for members of the board who are or were partners in (1) PwC, (2) KPMG, or (3) Grant Thornton; and if so, who worked for whom, when, and for how long.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board operates independently from HM Government. BEIS is therefore unable to provide information relating to members of staff, including information on job history, supporting its work.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the High Court judgement on the Royal Bank of Scotland prospectus case (2015 EWHC 3433 C), what assessment they have made of the judgment; whether the UK Endorsement Board consults equity analysts in endorsing accounting standards; and if so, why.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board is required to consult individuals and organisations with an interest in the quality and availability of accounts, including users and preparers of accounts. Regulation 8 of the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 sets out the requirements for consultation before adopting an international accounting standard for use in the UK.
The UK Endorsement Board does not exclusively seek views from equity analysts. The Board issues all its consultations on endorsement assessments publicly on its website, to ensure that all stakeholders have an opportunity to respond. All responses are given due consideration and are published on the Board’s website.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 22 May 2018 (HL7589), what assessment they have made of the appointment of David Willis to the board of the Financial Reporting Council given his previous role as Chief Executive of a company that was contracted to undertake enforcement work for that body without a tender process.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The recent appointment of FRC Board members was based on merit and capability and undertaken following due process under the Governance Code on Public Appointments which is set by the Office of the Commissioner for Public Appointments. Due diligence was conducted for all candidates shortlisted for interview in relation to potential conflicts of interest.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 5 March 2018 (HL5587) and to the article in The Times ‘Standards board ‘looks like a cabal’’, published on 7 February, what assessment they have made of whether legal advice obtained from Martin Moore QC for (1) the Financial Reporting Council, or (2) the Institute of Chartered Accountants in England and Wales, has been (a) properly obtained, (b) independent, and (c) suitable for determining matters of public interest.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The organisations referred to in these questions - the UK Endorsement Board (UKEB), the Financial Reporting Council (FRC) and the Institute of Chartered Accountants in England and Wales (ICAEW) – are responsible for procuring their own legal advice. The FRC which facilitates the UKEB is an arm’s length body which reports annually to the Department on how it has carried out responsibilities under its remit. The ICAEW is an independent organisation.
The issue of whether to publish legal advice is for the respective organisations to consider.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether they will publish the documents referred to in the article in The Times ‘Standards board ‘looks like a cabal’’, published on 7 February.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The organisations referred to in these questions - the UK Endorsement Board (UKEB), the Financial Reporting Council (FRC) and the Institute of Chartered Accountants in England and Wales (ICAEW) – are responsible for procuring their own legal advice. The FRC which facilitates the UKEB is an arm’s length body which reports annually to the Department on how it has carried out responsibilities under its remit. The ICAEW is an independent organisation.
The issue of whether to publish legal advice is for the respective organisations to consider.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the article in The Times ‘Standards board ‘looks like a cabal’’, published on 7 February, whether they plan to investigate the report that the UK Endorsement Board intended to use Martin Moore QC for legal advice “behind the scenes” despite an acknowledged conflict of interest which prevented him from being formally instructed.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The organisations referred to in these questions - the UK Endorsement Board (UKEB), the Financial Reporting Council (FRC) and the Institute of Chartered Accountants in England and Wales (ICAEW) – are responsible for procuring their own legal advice. The FRC which facilitates the UKEB is an arm’s length body which reports annually to the Department on how it has carried out responsibilities under its remit. The ICAEW is an independent organisation.
The issue of whether to publish legal advice is for the respective organisations to consider.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Guardian article ‘Standards board “looks like a cabal”’, published on 7 February, whether the National Audit Office has given any opinion on the funding model for the UK Endorsement Board.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board is an unincorporated association and is not subject to audit by the National Audit Office. The Board is subject to Financial Reporting Council (FRC) oversight in respect of its governance and due process. In setting its budget, the UKEB consults with the FRC and follows the FRC’s budgeting processes. The FRC is subject to audits from the National Audit Office.
The FRC’s Chief Executive and Accounting Officer is the UK Endorsement Board’s Accounting Officer.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Guardian article ‘Standards board “looks like a cabal”’, published on 7 February, which person in the Financial Reporting Council is the Accounting Officer responsible for making disbursements on behalf of the UK Endorsement Board; and whether disbursements will be suspended pending an investigation by the National Audit Office into the Board’s activities.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board is an unincorporated association and is not subject to audit by the National Audit Office. The Board is subject to Financial Reporting Council (FRC) oversight in respect of its governance and due process. In setting its budget, the UKEB consults with the FRC and follows the FRC’s budgeting processes. The FRC is subject to audits from the National Audit Office.
The FRC’s Chief Executive and Accounting Officer is the UK Endorsement Board’s Accounting Officer.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 7 December (HL4413), what were the legal expenses to date of (1) the UK Accounting Standards Endorsement Board Limited, and (2) the UK Endorsement Board, by the name of (a) person, or (b) firm engaged; what was the cost of the advice in each case; and what were the dates of completion of tenders for the appointment of each of those engagements.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Accounting Standards Endorsement Board Limited provides the operational facilities and resources to support the UK Endorsement Board’s activities.
The UK Endorsement Board is an independent unincorporated association and has autonomy of decision-making in relation to the functions conferred upon it. Procurement of legal advice in undertaking those functions is a matter for the UK Endorsement Board and BEIS has no role in this process.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 7 December (HL4416), whether they consider 17 years a reasonable timescale to produce an accounting standard.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
I refer the noble Baroness to my previous response to question number HL4416, answered on 7 December 2021.