The Financial Reporting Council (FRC) should be replaced as soon as possible with a new regulator with clear statutory powers and goals, an independent review has concluded.

Led by Sir John Kingman, the review suggests the regulator be named the Audit, Reporting and Governance Authority, and that it should have a deeper dialogue with UK investors.
It also argues that "serious consideration" be given to abolishing the Stewardship Code unless a "fundamental shift" ensures it focuses on effectiveness and not policy statements.
In addition, it suggests the new regulator consider strengthening oversight of corporate reporting to ensure disclosures in the UK are at least as demanding as they are internationally.
The Pensions and Lifetime Savings Association (PLSA) responded by saying it supports measures to help pension schemes recognise how well asset managers are doing on stewardship.
But it said creating a stronger relationship between the FRC and the investment community would require the regulator employing more staff with investor expertise.
"We hope the measures outlined in Kingman's report will help ensure that a new body can work better towards the interests of investors," PLSA policy lead on investment, Caroline Escott, said.
"It is also important that pension scheme investors can rely upon a well-regulated audit market which ensures high quality audits of the companies they invest in."
The FRC regulates auditors, accountants and actuaries in the UK, sharing this responsibility with professional membership bodies like the Institute and Faculty of Actuaries.
Today's review argues that the new body should not be funded on a voluntary basis, and must not allow staff or board members to work on regulation relating to a past employer.
It also recommends that the current self-regulatory model for the largest audit firms should end, and that the government reviews the UK's definition of a Public Interest Entity (PIE).
Business secretary, Greg Clark, said: "The government will take forward the recommendations to replace the FRC with a new independent statutory regulator with stronger powers.
"This body will build on our status as a great place to do business, and form an essential part of the government's efforts to grow trust and public confidence in business and regulations."