On 13 August 2024, the Financial Reporting Council (FRC) announced the publication of a discussion paper by a cross-regulatory group on the future of digital reporting in the UK.
The group, comprising the Financial Conduct Authority, Companies House, HM Revenue & Customs (HMRC) and the Charity Commission for England and Wales, aims to gather stakeholder feedback on crucial developments in digital reporting.
Rationale
The discussion paper notes that each of the regulators in the group are in the early stages of considering significant and substantial changes regarding their digital filing requirements. Each regulator recognises the benefits of joined-up discussions and are committed to working together to solve the challenges of the next phase of digital reporting in the UK. In addition, the discussion paper adds that “we are moving into a new phase”, in the light of the post-EU Exit legislative landscape and the possibility of divergence from European reporting requirements, the passing of the Economic Crime and Corporate Transparency Act 2023, the arrival of global sustainability and other narrative reporting, and the ongoing digital transformations of HMRC, Companies House and the Charity Commission.
Topics
Key topics covered in the discussion paper include:
- Potential alternatives to the European Single Electronic Format taxonomy for UK regulated markets.
- Proposed changes to structured digital reporting to support regulatory disclosure initiatives.
- Considerations for mandatory assurance of digital tagging.
- The impact of “full tagging” requirements on companies and charities.
- Strategies to support stakeholders in adapting to new digital reporting requirements.
Next steps
The deadline for comments on the discussion paper is 1 November 2024.