C2 Part XXII Auditors and Actuaries

Annotations:
Modifications etc. (not altering text)
C2

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))

Information

I1C1C3C4C5C6C7343 Information given by auditor or actuary to F1a regulator: persons with close links.

1

This section applies to a person who—

a

is, or has been, an auditor of an authorised person F3or 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 F4or 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 F5a regulator

a

information on a matter concerning the authorised person F6or 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 F7that regulator.

4

Subsection (3) applies whether or not the auditor or actuary is responding to a request from the F8regulator.

5

The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to F2a 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 F2a regulator in the circumstances prescribed by the regulations.

F116A

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

The matters to be communicated to F2a regulator in accordance with the regulations may include matters relating to persons other than the authorised person F9or recognised investment exchange concerned.

8

CL has close links with the authorised person F10or 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.

F139

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1210

In subsection (6A) F14“investment firm” has the same meaning as in Article 4(1) of the capital requirements regulation.