UK Corporate Governance Code Changes Target Financial Checks (1)

The UK’s audit watchdog updated the country’s corporate governance code for big publicly listed companies, strengthening reporting on internal controls but backing away from wider action on topics like sustainability.

The main change to the code, announced Monday by the Financial Reporting Council, builds on an existing expectation that company boards monitor risk management and internal controls. Internal controls are the procedures that firms use to ensure financial information is accurate. Now boards must explain in their annual reports how they have conducted this monitoring.

The code applies to companies with a premium stock exchange listing, which mostly includes ...