ACT responds to the Statement by the Secretary of State for Trade and Industry "Strengthening Corporate Governance"
Whilst the Association of Corporate Treasurers (ACT) generally welcome the Secretary of State's statement today and the reports to which she refers (Higgs and Smith), we continue to believe that a key responsibility of the board of a company is oversight of risk.
The Association of Corporate Treasurers welcomes the proposed guidance on audit committees issued by the Financial Reporting Council's group chaired by Sir Robert Smith.
It is particularly important that Sir Robert recommends that audit committee training include risk management - which we presume to be widely defined and not confined to financial risks. Indeed, we believe that all directors and not just the audit committee members should have such training.
Reaction to Higgs from corporate treasurers - the custodians of the company’s financial risk management process, implementing the framework set by the board
Recent comments by the ACT underline the fact that introducing adequate competition into the ratings marketplace goes far beyond increasing the number of ratings providers.
Corporate Finance could be hit by Law Commission proposals to curb trustee exemptions
The ACT has expressed its concern that current proposed changes in UK trustee law could increase costs of finance for companies and undermine London’s position as a leading corporate finance centre. It therefore urges exemption for “corporate finance trusts”.
The Law Commission has put forward plans to narrow the scope of exemptions from liability enjoyed by trustees under UK law (CP 171).
ACT Response sent via e-mail to the ASB from the ACT Derivatives Accounting Working Group (DAWG)
The Accounting Standards Board
Holborn Hall
100 Gray’s Inn Road
London
WC1X 8AL
14 October 2002
Dear Paul
Re: The Association of Corporate Treasurers proposal to the Accounting Standards Board in respect of FRED 30 and recently proposed revisions to IAS 32 and IAS 39
