Defining the UK Corporate Governance Code
The UK Corporate Governance Code is a cornerstone of corporate accountability and transparency for companies listed on the London Stock Exchange. Issued by the Financial Reporting Council (FRC), the Code sets out best practices for board leadership, risk oversight, audit processes, and stakeholder engagement.
Updated in 2024, the Code reflects growing expectations for boards to demonstrate proactive oversight—not just in financial controls but across the broader scope of internal operations. Its latest revision sharpens focus on risk management, internal controls, and board accountability, particularly through a strengthened Provision 29.
A breakdown of Provision 29
Provision 29 of the 2024 Code represents a significant shift in how companies must monitor and disclose their internal control effectiveness. Rather than a passive review, companies are now expected to:
- Annually declare the effectiveness of all material controls—spanning financial, operational, compliance, and ESG-related processes.
- Disclose the methodology used to evaluate those controls, including scope, frequency, and findings.
- Explain any weaknesses and the board’s response or remediation plans.
This approach encourages boards to embed continuous monitoring and demonstrate a clear understanding of where risks sit and how they are managed. The goal? A transparent, documented, and board-owned framework for internal control.
Types of organizations subject to the Code
The UK Corporate Governance Code applies on a comply-or-explain basis to:
- Premium-listed companies on the London Stock Exchange (main market)
- Large subsidiaries or UK operations of global groups seeking to align with UK governance standards
- Organizations preparing for IPOs or public listings
- Firms voluntarily aligning with the Code to strengthen investor trust or meet stakeholder expectations
While not mandatory for private companies, many large or regulated entities follow the Code as a best practice benchmark—especially as audit reform and trust in corporate reporting remain under scrutiny.
Core elements supported by Impero
Impero enables organizations to embed the principles of Provision 29 into everyday business practices. The platform is purpose-built to help governance, risk, and compliance (GRC) teams:
- Map material controls across business functions and assign ownership
- Automate testing and monitoring to ensure ongoing effectiveness
- Document annual reviews with structured, audit-ready reports
- Centralize risk oversight for the board and audit committee with live dashboards
- Build a culture of compliance by integrating risk controls into operational workflows
Impero helps reduce manual effort while enhancing visibility, so your teams can move beyond checklists to a real-time governance model.
Get started with the Impero platform
Provision 29 calls for a more dynamic approach to internal controls—one that requires more than static reviews or after-the-fact reporting. Impero helps you stay ahead by embedding governance into the way your teams work, every day. Whether you’re preparing for your next annual report, responding to investor expectations, or designing a governance framework from the ground up, Impero supports you at every step.
👉 Reach out to our team to discover how Impero can support your compliance with the UK Corporate Governance Code.
