Private firms face rules clampdown

THE Financial Reporting Council is poised for a crackdown on privatelyowned firms amid growing concerns that even the largest of them do not regard themselves as publicly accountable.

A report commissioned by the FRC and written by James Wates, chairman of family-owned building firm Wates Group, is expected to draw up a list of measures including a code of practice for greater transparency in financial reporting, corporate governance and the gap between boardroom and shopfloor pay.

It is an acknowledgement that the impact on society of private firms can be just as great as those listed on the Stock Exchange. The failure of BHS has been widely seen as the catalyst for the increased scrutiny. This week former BHS owner Dominic Chappell will be sentenced after failing to provide information to the Pensions Regulator on his £1 purchase of the retail chain in 2015 from Sir Philip Green who later agreed to pay £363million into the pension fund.