Timely advice for brokers;
Leading audit and accountancy firm PKF Littlejohn has highlighted that a significant proportion of UK insurance brokers have yet to look at the impact the FRS 102 financial reporting changes will have on their business.
“We believe that a large proportion of the brokers in the market have yet to commission an impact assessment”, said partner Paul Goldwin. “That’s bad news for the sector, because there is a limited pool of advisers. Many of those firms will not be able to obtain the advice they need at short notice and they risk being non-compliant as a result.”
The firm is urging insurance brokers to act now, as they launch a new initiative to raise awareness and support preparation. The initiative will include practical guidance, workshops, and one-to-one consultations designed to help brokers understand how the revised FRS 102 standards will affect their financial reporting.
Updates to areas such as revenue recognition and leases are expected to have a noticeable impact across the sector, and particularly for brokerages on a sale trajectory.
“The implications for brokerages who may be considering a sale of the business are particularly significant,” said partner Satya Beekarry. “Brokers who do not move early to assess and implement the changes will be in a much weaker position when it comes to any due diligence process.”
The revised standards form part of the Financial Reporting Council’s periodic review of UK GAAP and are applicable from 1 January 2026.
“The message is simple: don’t wait until it’s too late,” added Beekarry. “By acting now, brokers can avoid disruption, additional costs, and even find opportunities to improve their internal reporting processes.”
For more information on the initiative or to register for upcoming FRS 102 briefings, visit the firm’s FRS 102 Hub or contact Jenna Saldanha at jsaldanha@pkf-l.com.
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