October 2016 saw Prime Minister Theresa May announce plans to invoke Article 50 by the end of March 2017. By setting the course for Britain to leave the EU by 2019, May hopes the UK will become a “fully independent, sovereign” country. This will, of course, affect the UK in a number ways, we’ve outlined some of the key points below:
- It is said to be “very likely” that MPs will be able to vote on the final Brexit agreement between the UK and EU.
- Mrs May has stated that regaining control of immigration was more important than access to the single market.
- The intention to repeal the 1972 European Communities Act, which gives direct EU laws in Britain, has meant that all existing EU laws would be transposed into domestic legislation.
- The PM has given reassurance that any rewriting of EU laws would not seek any weakening of employment protection in the UK with Theresa May also guaranteeing existing EU workers rights.
- Nearly 90% of CFO’s feel their business faces abnormally high levels of uncertainty with more than half planning to cut investment and hiring over the coming year
- A major worry has been regarding Britain’s financial sector with concern that a hard Brexit would push banks to look at cities such as Frankfurt or Dublin.
In response to these, and other, announcements and concerns the FRC’s Chairman Sir Win Bischoff addressed key issues of annual reporting with Brexit.
- Corporate Governance - considering how governance principles best meet the wider demands of all stakeholders or need to be amended.
- Accounting standards - the application of international standards that presently come to us from the EU
- Audit - June 2016 saw the implementation of the European Audit Directive. There is no mood to reverse this but the standards may be tweaked to ensure high quality.
Brexit will see a number of changes across so many areas of UK. We will make sure that you stay up to date with annual reporting developments and can work with you to produce transparent and clear corporate communications.