SCHEDULES

SCHEDULE 14 Auditors: Appointment, Tenure, Qualifications and Remuneration

Power of F4appropriate authority to require second audit

Annotations:
Amendments (Textual)

I19

1

Where a person appointed auditor under this Schedule was, for any part of the period during which the audit was conducted, ineligible for appointment to that office, the F3appropriate authority may direct the friendly society or registered branch concerned to retain a person eligible for appointment as auditor under this Schedule—

a

to audit the relevant accounts again; or

b

to review the first audit and to report (giving his reasons) whether a second audit is needed;

and the society or branch shall comply with such a direction within 21 days of its being given.

2

If a second audit is recommended, the society or branch shall forthwith take such steps as are necessary to comply with the recommendation.

F13

Where a direction is given to a society or branch under this paragraph the F2PRA must send a copy of the direction to the FCA and the FCA must place a copy of the direction in the public file of the society.

3A

Where a society or branch receives a report under sub-paragraph (1)(b) above, it shall within 21 days send a copy of it to the F6FCA and, if the society is a PRA-authorised person, the PRA, and the FCA must place a copy of the report in the public file.

4

Any statutory or other provisions applying in relation to the first audit shall apply, so far as practicable, in relation to a second audit under this paragraph.

5

If a society or branch fails to comply with the requirements of this paragraph, it is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale; and in the case of a continuing offence to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

6

A direction under this paragraph is, on the application of the F5appropriate authority, enforceable by injunction or, in Scotland, by an order under section 45 of the M1Court of Session Act 1988.

7

If a person accepts an appointment, or continues to act, as an auditor under this Act at a time when he knows he is ineligible, the society concerned may recover from him any costs incurred by it in complying with the requirements of this paragraph.