A committee of accountancy and other market regulators has met for the first time to review the robustness of the UK's financial reporting system in the wake of the collapse of Enron in the US. The meeting came days after accounting representatives told a UK Parliamentary committee that 'knee-jerk' reforms following Enron would be detrimental.

The formation of the regulator group was announced by Patricia Hewitt, the trade secretary, in February. It is chaired by Melanie Johnson, minister for competition, consumers and markets. Johnson says: 'The collapse of Enron in the US has focused attention more than ever on the role of auditors and how companies regulate their financial affairs. We need to make sure that concerns about company audit and financial reporting are addressed carefully and in a co-ordinated way, and that they provide an effective framework for strong national and international capital markets.'