The UK Corporate Governance Code was updated by the Financial Reporting Council (FRC) in 2024. The new Code applies to financial years beginning on or after 1 January 2025, apart from Provision 29, which will come in on 1 January 2026. 

The 2024 Code includes some small changes compared with the 2018 Code, particularly focused on audit, risk and internal controls. It outlines the board’s responsibilities when it comes to putting effective risk management and internal controls in place, and reporting requirements for their effectiveness. Provision 29 asks boards to make a declaration of effectiveness of material internal controls. 

The FRC released two documents alongside the Code, Key Changes to the UK Corporate Governance Code and the UK Corporate Governance Code 2024 mythbuster, that outlines the changes.

The Code continues to operate on a ‘Comply or Explain’ basis. Companies that move away from the Code in some areas will be expected to explain how their alternative arrangements are more appropriate in meeting high governance standards in their case.

Peter van Veen, ICAEW’s Director of Corporate Governance and Stewardship described the revised Code is a welcome step forward. “Increasing the focus of boards on internal controls and managing risk should strengthen corporate governance overall and, in turn, boost investor confidence."

ICAEW welcomed the decision to delay the introduction of the requirements relating to internal controls and risk frameworks to January 2026, to give companies enough time to make the necessary changes.