IoDWELCOMES FRCS LATEST MOVES ON HIGGS

The Institute of Directors (IoD) today welcomed theFinancial Reporting Councils announcement that, following consultation on theHiggs Review and Sir Robert Smiths Audit Committee Review, it intends toset-up a working group to consider the wording of the Combined Code.

Endorsing the FRCs decision, IoD Director General, GeorgeCox, said:

From the beginning the IoD welcomed the broad thrust ofboth Derek Higgs and Sir Robert Smiths reports, but felt that there wereserious problems with some of the Combined Code provisions which deserved afull consultation and review. We arepleased to see that the Financial Reporting Council is addressing theseproblems.

Once we have the final form of the Combined Code it willrest with both shareholders and companies to play their part in the intelligentdialogue necessary for the comply or explain regime to work as envisaged.

The IoD appreciates that this announcement is made in thelight of comments on the initial draft.This recognition of the benefits of the consultation process shows thatin the FRC we have a body that is, unusually, prepared to look critically at itsown procedures and actions. Thisfurther review should lead to a Code that has wide-ranging support from bothcompanies and shareholders.

Ends 14.5.03 No.168

Note to Editors

1. A copy of the IoD's response to the Higgs Review can bedownloaded at www.iod.com/pressoffice or be contacting the Press Office on

0207451 3264.

2. The IoD (Institute of Directors) is a non-party politicalindependent organisation with around 55,000 members. In addition to its widerange of business services, the IoD provides an effective voice to representthe interests of its members to government and key opinion-formers. It alsobrings he experience of business leaders to bear on the conduct of public affairs.

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