On Tuesday 24 July, the parliamentary Secretary to the Treasurer, The Hon. Mr Bernie Ripoll addressed the Corporate Leaders In Finance Forum (see HERE).

 

Mr Ripoll confirmed that the government will proceed with its plans to regulate remuneration disclosure, despite the revelation first made public by Guerdon Associates that the government had shelved plans (see HERE) for legislating the exposure draft that was made public earlier this year (see HERE).

 

The good news is that Mr Ripoll’s speech hinted that the legislation would be different from the draft. Presumably in response to misgivings of the sort we expressed, (see HERE) Mr Ripoll indicated that he is reviewing the additional reporting requirements and that we will see changes in the years to come. It seems that the government has understood that the new requirements add to the existing requirements and hence make remuneration reporting more complex than before.

 

Mr Ripoll also makes reference to the good work the Financial Reporting Council has done recently in reducing complexity. Could this be an acknowledgement that an independent body may make a better job of the development of disclosure requirements? This, indeed, was the path undertaken in the UK, whereby the development of regulations by the Department of Business Innovation and Skills was undertaken with the primary input of the UK’s equivalent to the Financial Reporting Council.

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