Stop Burying Us in Swollen Corporate Reports, Says Audit Watchdog Boss
The FRC boss warned against growing annual reports
Richard Moriarty, Chief Executive of the Financial Reporting Council (FRC), has warned that annual reports have grown excessively large, consuming too much time and resources from company directors.
He explained that the increasing focus on environmental, social, and governance (ESG) topics has led to longer documents, diverting attention from innovation and entrepreneurship.
“We want boards to spend their time on entrepreneurial activity,” Moriarty said in an interview with the Daily Mail.
“The more they are in a defensive posture box-ticking, the less they are thinking about innovation and growth.”
The Problem with Bloated Reports
Moriarty noted that oversized reports make it harder for investors and creditors to find relevant information. He has been collaborating with leading City figures, including fund manager Nick Train, to address the issue.
“It’s a long overdue conversation, and the way I put it is wouldn’t it be good if this were a once-in-a-generation reset?” Moriarty added.
Reform and Regulation
Since taking charge three years ago, Moriarty has overseen major changes at the FRC following corporate collapses such as Carillion.
A review by Sir John Kingman had previously labelled the FRC as a “timid watchdog” and recommended replacing it with the Audit, Reporting and Governance Authority (ARGA).
However, plans for ARGA and an audit reform bill were shelved by Starmer’s government.
Improvements and Future Outlook
Despite ongoing challenges, including fines on Big Four accountancy firms, Moriarty insists progress has been made:
“Audit quality in the UK has come a hell of a long way since that dark period of 2018. There was a complete breakdown of public trust and confidence in the audit profession and indeed its regulation.”
He concluded that the FRC must support responsible risk-taking and help businesses grow, rather than stifle innovation through excessive compliance.
Reference: City A.M. “Stop burying us in swollen corporate reports, says audit watchdog boss” (2026)