For financial years beginning on or after 1 January 2026, UK Boards must comply with Provision 29 of the Corporate Governance Code. Directors are now required to provide an explicit declaration regarding the effectiveness of their material internal controls.

• The “Evidence Gap”: Boards are legally exposed if they sign a declaration without a documented audit trail. “Gut feeling” is no longer an acceptable defense for the Financial Reporting Council (FRC).

• Continuous Monitoring: To sign with confidence, the Board needs a mechanism to monitor control testing throughout the year, not just in the weeks leading up to the annual report.

The Enactia Edge: Enactia provides the “Executive View” of compliance. We roll up thousands of granular technical controls into a single Governance Health Score, giving directors the confidence to sign.

FAQ: Provision 29 & Internal Controls

• What counts as a “material” internal control? Generally includes any control where a failure could significantly impact financial reporting, operations, or regulatory compliance.

• Does this apply to private UK companies? While specifically for premium-listed PLCs, many large private companies are adopting Provision 29 as “best practice.”

• How does a GRC tool help with the annual report? It provides a “Statement of Accuracy”—a report that summarizes all control testing, failures, and remediations performed during the year, serving as the evidentiary basis for the Board’s declaration.

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