Dear Members,

I'm delighted to introduce the Institute of Regulation's Annual Report and Accounts for 2024-25.

It was a year in which regulation was prominent. At the 2024 General Election, all political parties included proposals to abolish some regulators and to create others. The new Labour Government has since implemented its predecessor's proposals to create a football regulator, with plans for new regulators of the armed forces and of ethics and integrity. It has also taken wide-ranging action to encourage 'regulation for growth'. This is an important and evolving agenda where the Institute of Regulation, through its members, is providing professional advice and advocating for high regulatory standards in line with government goals. We were delighted to host the new Minister for regulation, Justin Madders MP, at our annual conference in March and to work with his officials from the Department for Business and Trade on the Government's plans for better training and support for regulators, where the Institute is acknowledged to have a leading role.

2024-25 saw the Institute consolidate its place as the leading professional community of UK regulators. An additional 27 corporate members joined the Institute such that we now have 54 regulators as members, with a further 15 affiliate members from firms and other bodies that work closely with regulators to help them succeed. We value the contributions of them all. We have also strengthened links with international and academic colleagues, including the New Zealand Ministry for Regulation and the US University of Pennsylvania's regulation faculty whose bosses we both interviewed for our successful monthly podcast on regulation. We have built our training offer, with over 600 individuals attending our events in the year, with plans to expand our training to regulatory non-executives in 2025-26, working with our member the UK National Audit Office. And our seven Special Interest Groups (SIGs) have grown stronger, with plans to establish a new SIG on research for regulators.

I have no doubt that the coming year will be as exciting and challenging. I look forward to meeting and engaging with you at our events. In the meantime, I thank all those who contributed to the Institute's success in 2024-25, particularly our board members and our 2024-25 interim director Louisa Dale, but mostly I thank you, as members, who have used your expertise and time to help UK regulation become the best it can.

Sincerely,

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Institute of Regulation for the year ended 31 March 2025 which comprise, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Institute of Regulation, as a body, in accordance with the terms of our engagement letter dated 15 September 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Institute of Regulation and state those matters that we have agreed to state to the board of directors of Institute of Regulation, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Institute of Regulation and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Institute of Regulation has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of Institute of Regulation. You consider that Institute of Regulation is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Institute of Regulation. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

Institute of Regulation is a private company limited by guarantee incorporated in England and Wales. The registered office is C/O Fieldfisher, Riverbank House, 2 Swan Lane, London, EC4R 3TT.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principle accounting policies adopted are set out below.

Turnover from members is recognised over the period of the membership.

Turnover from events is recognised on the date of the event.

Expenses are recognised when they are invoiced.

Expenses include VAT where applicable as the company cannot reclaim it.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £10.