News

The revised Provision 29 of the UK Corporate Governance Code 2024 came into effect on 1 January 2026, introducing a significant shift in how boards report on internal controls.

Under the updated provision, boards are now required to make an annual declaration on the effectiveness of the company’s material internal controls. This includes financial, operational, reporting and compliance controls, as well as an explanation of how the board has monitored and reviewed them.

For listed companies, this marks a move from simply reviewing controls to publicly confirming their effectiveness. As a result, Provision 29 is expected to increase the focus on governance evidence, audit trails and the clarity of annual report disclosures.

Importantly, the provision does not require companies to list every control or follow a prescribed number of controls. The emphasis is on materiality, board oversight and the quality of the reporting narrative.

For reporting teams, preparation will be key. Companies should define their material controls early, assess any gaps in documentation, align internal stakeholders and allow sufficient time for review, validation and sign-off within the reporting timetable.

Provision 29 is not just a governance update; it is also a corporate reporting challenge. Clear, well-evidenced disclosures will help companies demonstrate accountability, strengthen investor confidence and support best-practice reporting.

Perivan supports listed companies with the full annual reporting process, from design and production through to secure distribution and shareholder communications. With extensive experience in corporate reporting, Perivan helps clients deliver compliant, accurate and effective reports with confidence.

To learn more about how Perivan can support your next reporting cycle, please contact us.