The Financial Reporting Council (FRC) is facing a crisis in carrying out its work, with its staff recruitment process tied up in litigation and rules drafted under the law still awaiting approval. More than a decade after the FRC was established, it still has no permanent staff. The institution, which regulates audit firms and auditors, began operations in April 2016. But no permanent staff have ever been hired. Currently, 25 to 30 students are working at the FRC as interns. Having been run by intern students for years, the institution, which plays a crucial role in maintaining discipline in the financial sector, has seen its work hampered in numerous ways.
Separately, four sets of rules drafted to properly govern the FRC’s operations were sent to the Finance Division under the Finance Ministry for approval, but have remained stuck there for nearly a year. These are the Administrative Penalty Rules, the Rules on Filing of Financial Statements, the Accounting and Appellate Authority Rules, and the Chartered Legal Fees Rules. Without approval of these rules, the FRC has been unable to carry out necessary functions.
FRC Chairman Sajjad Hossain Bhuiyan was appointed a commissioner of the Anti-Corruption Commission (ACC) last Monday. He resigned from the FRC the following day. As a result, there are concerns that the appointment of a new chairman could further slow the institution’s work. Those familiar with the matter believe a new FRC chairman needs to be appointed quickly to maintain discipline in the financial sector.
On the approval of the rules, Finance Division Joint Secretary Syed Rashedul Hossain said the Administrative Penalty Rules have already been finalized and are currently being sent to the Law Ministry for vetting. He said work on revising the Rules on Filing of Financial Statements, the Appellate Authority Rules, and the Chartered Legal Fees Rules is also currently under way.
According to reports, Sajjad Hossain Bhuiyan, a former tax commissioner, was appointed FRC chairman in May 2025. After joining as chairman, he launched a fresh initiative to hire permanent staff at the FRC. A proposal to hire 150 staff members was sent to the Finance Ministry, and approval was granted in the first phase for 57 positions. After completing various procedures, the FRC published a recruitment notice on December 31, 2025, with applications opening on January 6, 2026. But after the recruitment notice was published, a writ petition seeking a stay was filed at the High Court. When the stay order was appealed, the Appellate Division ordered the case sent to the relevant bench for regular hearing. The case is currently awaiting a hearing before that bench.
According to relevant sources, the FRC has since sent a fresh proposal to the Finance Ministry for staff recruitment, seeking approval to hire the remaining 93 of the 150 positions, excluding the 57 already in the pipeline. The FRC’s reasoning for seeking approval for the new positions is that legal complications surround the recruitment process for the 57 positions, and the FRC will abide by whatever the court decides on that matter. If approval is granted for new recruitment excluding those 57 vacant posts, it would resolve part of the crisis. However, no decision has yet been reached on this new proposal.
The FRC’s recently departed chairman, Dr Md Sajjad Hossain Bhuiyan, said the FRC needs to be strengthened to restore discipline in the financial sector. The FRC has been carrying out its work without any permanent staff, he said. “We began the staff recruitment process. It has been somewhat obstructed due to legal complications. We have contacted the Attorney General’s office and taken the necessary steps to resolve the legal complications. I hope the matter will be resolved quickly.” He added that four sets of rules had been drafted to bring dynamism to the FRC’s operations and sent to the ministry for approval, and that he expects them to be approved quickly, after which the FRC will become more effective and functional. He said that because the Accounting and Appellate Authority Rules have not been approved, the FRC has been unable to form an appellate authority. As a result, parties aggrieved by FRC decisions have had no avenue for legal remedy. In light of this, the FRC issued a notice on August 11 stating that aggrieved parties may file a review petition with the FRC council. This arrangement will remain in effect until an appellate authority is formed.
Those familiar with the matter say that although the FRC was established under the Financial Reporting Act, 2015, its operations are conducted in line with international standards. The FRC is responsible for reviewing the financial statements and audit reports of various companies and institutions, and for ensuring the quality of work by auditors and audit firms.
They say that accurate financial reporting ensures the government receives the correct revenue, while also allowing investors to make sound investment decisions. To ensure foreign investment in the capital market, companies’ financial statements must be accurate.
Sector experts say there is no alternative to strengthening the FRC to ensure the accuracy of companies’ financial statements. They say the complications should be resolved and steps taken quickly to recruit staff and approve the necessary rules.
Al Amin, a professor in Dhaka University’s Department of Accounting, said the FRC needs to hire skilled staff to become effective. A specialized institution like this cannot be run by interns for years on end, he said. The Bangladesh Securities and Exchange Commission (BSEC) is concerned about the audit quality of the 400 to 450 companies listed on the stock market. But the audit oversight of the roughly 350,000 companies registered with the Registrar of Joint Stock Companies (RJSC), which falls under the FRC’s jurisdiction, is not receiving the same level of attention when it comes to strengthening the institution responsible for it. He said a review committee could be formed, if necessary, to resolve the legal complications around staff recruitment at the FRC, with the committee working to determine the way forward on the recruitment issue.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report