Kevin Reed, Accountancy Age, Thursday 14 October 2010 at 16:39:00

FRC welcomes removal of government funding as a reinforcement of itsindependence

The government's funding of theFinancial ReportingCouncil is set to be removed.

Its move comes as part of the government's plan to retain the FRC, butsubstantially reformed. the FRC's future reliance on government funding willdisappear as part of that process.

Government funding currently accounts for 5% of the council's budget, withthe remaining 95% from market participants.

FRC chief executive Stephen Haddrill said the move would "reinforce" theFRC's independence as a regulator.

"The FRC looks forward to working with the government in the coming weeks asit prepares the Public Bodies Bill to ensure any additional reforms strengthenour independence and deliver greater transparency in the regulatory andoversight functions we undertake," he added.