C5 Part XXII Auditors and Actuaries
Information
C1C9341 Access to books etc.
1
An appointed auditor of, or an appointed actuary acting for, an authorised person—
a
has a right of access at all times to the authorised person’s books, accounts and vouchers; and
b
is entitled to require from the authorised person’s officers such information and explanations as he reasonably considers necessary for the performance of his duties as auditor or actuary.
2
“Appointed” means appointed under or as a result of this Act.
I1C2C6C9342 Information given by auditor or actuary to F1a regulator.
1
This section applies to a person who is, or has been, an auditor of an authorised person F16or recognised investment exchange, appointed under or as a result of a statutory provision.
2
This section also applies to a person who is, or has been, an actuary acting for an authorised person and appointed under or as a result of a statutory provision.
3
An auditor or actuary does not contravene any duty to which he is subject merely because he gives to F17a regulator—
a
information on a matter of which he has, or had, become aware in his capacity as auditor of, or actuary acting for, the authorised person F18or recognised investment exchange, or
b
his opinion on such a matter,
if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of F19that regulator.
4
Subsection (3) applies whether or not the auditor or actuary is responding to a request from the F20regulator.
5
The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to F22a regulator as mentioned in subsection (3).
6
It is the duty of an auditor or actuary to whom any such regulations apply to communicate a matter to F22a regulator in the circumstances prescribed by the regulations.
F236A
If the authorised person concerned is a credit institution or an investment firm, and an auditor or actuary communicates a matter to a regulator in accordance with the regulations, the matter must be disclosed simultaneously to the management body of the authorised person, unless there are compelling reasons not to do so.
7
F248
In subsection (6A) “credit institution” and “investment firm” have the same meaning as in Article 4(1) of the capital requirements regulation.
I2C3C7C9343 Information given by auditor or actuary to F2a regulator: persons with close links.
1
This section applies to a person who—
a
is, or has been, an auditor of an authorised person F4or recognised investment exchange, appointed under or as a result of a statutory provision; and
b
is, or has been, an auditor of a person (“CL”) who has close links with the authorised person F5or recognised investment exchange.
2
This section also applies to a person who—
a
is, or has been, an actuary acting for an authorised person and appointed under or as a result of a statutory provision; and
b
is, or has been, an actuary acting for a person (“CL”) who has close links with the authorised person.
3
An auditor or actuary does not contravene any duty to which he is subject merely because he gives to F6a regulator—
a
information on a matter concerning the authorised person F7or recognised investment exchange of which he has, or had, become aware in his capacity as auditor of, or actuary acting for, CL, or
b
his opinion on such a matter,
if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of F8that regulator.
4
Subsection (3) applies whether or not the auditor or actuary is responding to a request from the F9regulator.
5
The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to F3a regulator as mentioned in subsection (3).
6
It is the duty of an auditor or actuary to whom any such regulations apply to communicate a matter to F3a regulator in the circumstances prescribed by the regulations.
F256A
If the authorised person concerned is a credit institution or an investment firm, and an auditor or actuary communicates a matter to a regulator in accordance with the regulations, the matter must be disclosed simultaneously to the management body of the authorised person, unless there are compelling reasons not to do so.
7
8
CL has close links with the authorised person F11or recognised investment exchange concerned (“A”) if CL is—
a
a parent undertaking of A;
b
a subsidiary undertaking of A;
c
a parent undertaking of a subsidiary undertaking of A; or
d
a subsidiary undertaking of a parent undertaking of A.
9
“Subsidiary undertaking” includes all the instances mentioned in Article 1(1) and (2) of the Seventh Company Law Directive in which an entity may be a subsidiary of an undertaking.
F2610
In subsection (6A) “credit institution” and “investment firm” have the same meaning as in Article 4(1) of the capital requirements regulation.
C4C8C9344 Duty of auditor or actuary resigning etc. to give notice.
1
This section applies to an auditor or actuary to whom section 342 applies.
2
He must without delay notify the F12appropriate regulator if he—
a
is removed from office by an authorised person F14or recognised investment exchange;
b
resigns before the expiry of his term of office with such a person; or
c
is not re-appointed by such a person.
3
If he ceases to be an auditor of, or actuary acting for, such a person, he must without delay notify the F12appropriate regulator—
a
of any matter connected with his so ceasing which he thinks ought to be drawn to the F15regulator's attention; or
b
that there is no such matter.
F134
In this section “the appropriate regulator” means—
a
in the case of an auditor of, or an actuary acting for, a PRA-authorised person, the PRA;
b
in any other case, the FCA.
Pt. 22 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(b), 62, Sch. 3 para. 5 (with reg. 3) (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 196(5)(e) and (18.9.2023) by S.I. 2023/790, regs. 1(2)(a), 2(3)(b))