The Financial Reporting Council (FRC), Britain's accounting regulator, has launched an independent review to establish whether it needs to implement tougher sanctions to prevent wrongdoing.
The watchdog, which oversees and controls the auditing of companies and corporate governance codes applied by directors, said the decision to commission the review came on the back of stakeholder feedback.
The review will consider matters such as whether the reasons for imposing sanctions set out in its guidance and policies remain appropriate, the regulator said on Thursday (30 March).
It will also seek to determine the fairness and the effectiveness of the range of sanctions available under the enforcement procedures.
Furthermore, the FRC added, the process will aim to establish whether "the financial penalty sanctions, in particular, are adequate to safeguard the public interest and deter wrongdoing."
Last month, the regulator called for more powers to punish company executives caught breaking the law.
The review will be conducted by an independent panel chaired by former Court of Appeal Judge, Sir Christopher Clarke, and will comprise Peter Chambers and Andrew Long who bring extensive subject matter and regulatory expertise.
The independent panel will in due course issue a call for evidence and seek evidence from a range of relevant organisations and individuals, the FRC added.