Overview

Under the Financial Reporting Council Ordinance, the FRC has the power to impose disciplinary sanctions on PIE auditors and regi​stered responsible persons where there has been misconduct in relation to PIE engagements completed on or after 1 October 2019.

The Department of Discipline is responsible for carrying out the disciplinary function of the FRC. It will take firm and appropriate action in cases of misconduct by applying commensurate sanctions for the purposes of deterrence, investor protection, maintaining market confidence in the audit quality of listed entities and upholding the standards of conduct among PIE auditors and registered responsible persons.

Details of the FRC’s disciplinary function, including the range of sanctions available and our disciplinary process are set out in the Disciplinary Policy Statement. In exercising the power to impose pecuniary penalty, the FRC shall have regard to the FRC Guidelines for Exercising the Power to Impose a Pecuniary Penalty​. Further details of how sanctions will be applied can be found in our Sanctions Guidelines​.