Members of Parliament have declined to endorse Dame Jayne-Anne Gadhia, the government's preferred candidate to chair the Financial Reporting Council (FRC), citing concerns over her extensive portfolio of existing board positions. Gadhia, former CEO of Virgin Money, was grilled by the Business and Trade Committee regarding her nine directorial and chair roles, including positions at Ovo Energy, Shakespeare's Globe, and HMRC, in addition to the FRC role, which is advertised as a 10-days-a-month commitment. Committee Chair Liam Byrne MP highlighted the potential for "overload," urging Gadhia to clarify which roles she would relinquish.
During her pre-appointment hearing, Gadhia stated she would step down from Tate in November and from Ovo after its sale to E.ON, but she withheld details on other positions, explaining she had not yet informed those boards. She defended her ability to manage the workload, suggesting many roles demand limited time and that remote working would allow her to respond to FRC emergencies. However, MPs remained "pretty concerned" about the sheer number of commitments, which would still total seven directorial or chair roles beyond the FRC.
Gadhia also addressed critical issues facing the FRC, including advocating for its long-delayed transition to a "statutory footing" to ensure guaranteed funding and legal powers to demand information from firms. She acknowledged that the current FRC "doesn't have powers to require information" in all cases and that this reform is "high on the priority list." When questioned about the lack of competition in the UK audit market, specifically the Big Four's continued dominance, Gadhia admitted she didn't know the current market share figures but promised to provide them to the committee. She also avoided specifying which audit reforms she would champion, beyond supporting stronger statutory powers.
Her appointment comes after the government scrapped plans in January to create a new, more powerful regulator, the Audit, Reporting and Governance Authority (ARGA), which was intended to replace the FRC. Instead, the government aims to grant the FRC statutory footing when parliamentary time allows. Gadhia, who led Virgin Money from 2007 to 2018 and oversaw its acquisition of Northern Rock, was chosen by Business and Trade Secretary Peter Kyle, who described her as "perfectly placed to lead the FRC at this important time."
