UK Corporate Governance Code Provision 29
Effective corporate governance is paramount to ensuring the sustainability and integrity of organisations and the Code 2024 UK Corporate Governance (the 'Code') sets forth essential requirements that guide companies to establish sound governance practices.
These requirements are designed to enhance accountability, foster transparency, and promote ethical behaviour within corporate structures. Provision 29 of the Code, which is applicable for periods commencing on or after 1 January 2026, specifically focuses on the Board’s monitoring of the risk management and internal controls framework.
The Code is not significantly different from the 2018 Code with respect to this provision, continuing to emphasise a ‘comply’ or ‘explain’ approach, but it does seek to strengthen reporting requirements in relation to ‘material controls’. Internal Audit (IA) can play a pivotal role in helping firms to achieve the objectives of Provision 29.
This document explores the requirements of the Provision and aims to provide guidance to help firms review and develop a framework which will enable their Boards to make a declaration in line with the Code. By adhering to these requirements, companies can not only meet regulatory expectations but can also build trust with their stakeholders, including investors, employees, and the wider community.
The role that internal audit can play in supporting firms develop their approach is explained together with, for each of the 8 elements, key considerations that internal audit can include in assurance work. The Chartered IIA is confident that this document will help UK and Ireland internal audit professionals to understand the role they can play in supporting their organisation with Provision 29 in the Code. We encourage you to engage with the insights presented in this document as we collectively work towards fostering a culture of excellence in corporate governance.