Sir Bryan has been Chairman of the FRC since July 2001. His current contract term is due to end in June 2004. This new term will extend his appointment until December 2005.
Patricia Hewitt said: "Sir Bryan Nicholson has already led the FRC through a period of significant change. His work to implement Derek Higgs' recommendations on the role of non-executive directors resulted in a revised Combined Code that offers clarity, certainty and a robust framework for corporate governance.
"The Companies Bill, which has just begun its passage through Parliament, will put the final touches to a package of measures to restore confidence in company financial reporting following the collapses of Enron and WorldCom. This package will see a greatly enhanced role for the FRC and its subsidiary Boards. It is already in the process of taking over the functions of the Accountancy Foundation and taking a more proactive approach to reviewing company accounts. I am delighted that Sir Bryan will remain at the helm of the FRC. I have no doubt that he will provide strong leadership and much-needed continuity in this time of change."
Sir Bryan Nicholson said: "I look forward to continuing with colleagues the work of ensuring the UK's new framework of financial reporting, accountancy and audit regulation, and corporate governance is robust and of the highest integrity. The strong support for the FRC's much larger role from its main stakeholders, the business and financial community, the accountancy profession and government is both welcome and key to success."
