The UK 's accounting regulator , the Financial Reporting Council ( ##FC ) , is to be replaced by a more powerful watchdog with less potential for conflicts of interest . The Audit , Standards and Governance Authority ( Arga ) will be accountable to parliament and — unlike the voluntary industry ) - funded FRC — not made up of hires from the Big Four firms Deloitte , PWC , EY and KPMG . These companies will be regulated and have their accounts supervised , and will be liable to provide answers on policy and conduct . Greg Clark, 51, the business secretary, said the government would move ahead with the recommendations of a review of the Financial Reporting Council last year by Sir John Kingman, 49, the chairman of Legal &amp; General. Arga will also have license to more strictly punish managers and auditors following corporate failures , and intervene directly in their accounts .
The UK 's accounting regulator , the Financial Reporting Council ( ##FC ) , is to be replaced by a more powerful watchdog with less potential for conflicts of interest . The Audit , Standards and Governance Authority ( Arga ) will be accountable to parliament and — unlike the voluntary industry ) - funded FRC — not made up of hires from the Big Four firms Deloitte , PWC , EY and KPMG . These companies will be regulated and have their accounts supervised , and will be liable to provide answers on policy and conduct . Arga will also have license to more strictly punish managers and auditors following corporate failures , and intervene directly in their accounts .