The Financial Reporting Council (FRC), as part of a cross-regulatory group, has launched a discussion paper on the future of digital reporting in the UK.

The group, which also includes the Financial Conduct Authority, Companies House, HMRC and Charity Commission of England and Wales, is looking to gather stakeholder feedback on crucial developments in digital reporting.

In particular, the discussion paper is looking to address changes in the regulatory landscape, as well as considering the impact of the recently passed Economic Crime and Corporate Transparency Act 2023.

Seeking input from a wide range of stakeholders, the discussion paper will help shape the future of digital reporting in the UK, to ensure it meets the needs of all users while promoting transparency, comparability, and efficiency in corporate reporting.

Announcing the launch, the FRC stressed that the UK Taxonomy Suite plays a "crucial" role in minimising burdens on businesses while supporting economic growth by enabling investors to access and compare information efficiently and allowing regulators to confirm compliance with legal and regulatory requirements.

Key topics covered in the discussion paper include potential alternatives to the European Single Electronic Format (ESEF) taxonomy for UK regulated markets, proposed changes to structured digital reporting to support regulatory disclosure initiatives, and considerations for mandatory assurance of digital tagging.

It also considers the impact of "full tagging" requirements on companies and charities, as well as looking more closely at strategies to support stakeholders in adapting to new digital reporting requirements.

Commenting on the launch of the discussion paper, FRC executive director of regulatory standards, Mark Babington, said: “We want to hear from our stakeholders about how we can continue to develop digital reporting in the UK and further enhance the benefits it offers.

“Market intelligence, information, and data are increasingly important for both decision making and monitoring outcomes, so it is crucial that we set a strategy for UK taxonomies that will continue to deliver for business in the future.”

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