FRC to prioritise better investor engagement

The Financial Reporting Council (FRC) has said improving levels of engagement between institutional investors and company boards will be one of its top priorities for the next 12 months.

Detailing its outlook for the coming year, the regulator also revealed plans to strengthen corporate reporting and auditing standards among British firms, as well as contributing to a "strong UK voice in the EU" on such issues.

The pursuit of a more effective regulatory framework to add value for investors will be another priority for the FRC in 2011.

Chairman Baroness Hogg said the organisation intends to "focus on the key ingredients of corporate reporting, governance and audit".

She added: "We will encourage a more productive dialogue between investors and company boards and will strengthen corporate reporting and auditing frameworks."

The FRC said it will finalise its 2011/12 plan and levy proposals in May 2011.

Earlier this year, the regulator demonstrated its commitment to better engagement between shareholders and company directors with the publication of the UK's first Stewardship Code.