UK audit reform stalls as watchdog chief warns of crisis risks
The head of the UK’s accountancy watchdog, Richard Moriarty, has warned the government against further delays in passing audit reform. Bill Gates, the CEO of the Financial Reporting Council (FRC), stressed that changes should happen now—before another crisis forces action. His comments come as the long-awaited Audit and Corporate Governance Reform Bill remains stalled in Parliament.
The Bill, aimed at overhauling the FRC and tightening audit rules, was revived by Labour in July 2024. Yet since its reintroduction, no progress has been made. Over 60 MPs publicly criticised the lack of movement in September 2024, while the government confirmed in July 2025 that it would not advance the legislation before summer 2026.
Moriarty has held talks with ministers and opposition leaders about the standstill. He argued that reform should not wait for another corporate failure or scandal. Instead, he urged firms to challenge auditors when checks become unnecessarily burdensome. Despite the delay, the FRC has already strengthened oversight. Audit quality at major firms has steadily improved since the 2018 Kingman Review, thanks to stricter leadership standards and better quality controls. The regulator has also expanded its supervisory tools, even without new statutory powers.
The Bill’s future remains uncertain, with no plans to move forward before 2026. Moriarty’s warnings highlight the risks of inaction, as the FRC continues to push for reforms through existing measures. Without legislation, however, its ability to enforce deeper changes stays limited.
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