UK banks, FSA agree on new financial reporting code

Major UK banks have agreed to implement a new code for financial reporting aimed at addressing questions on disclosure raised in the aftermath of the credit crisis, the country's Financial Services Authority said.

The FSA said the code formed part of proposals designed to "enhance investors' confidence" in financial reporting and to help them "compare and contrast banks' performance".

"In the Turner Review we set out our view that the financial crisis had raised questions as to the adequacy of financial disclosure by banks throughout all major economies and the level of confidence that investors could place in their financial reports," Paul Sharma, FSA director for prudential policy, said.

"When applying this code to their 2009 year end accounts, the FSA expects firms to achieve significant improvement in the quality and comparability of disclosures."