SCHEDULES

SCHEDULE 10Recognised supervisory bodies

Part 3Arrangements in which recognised supervisory bodies are required to participate

Arrangements for setting standards relating to professional integrity and independence

21

The arrangements referred to in paragraph 9(2) are appropriate arrangements—

a

for the determining of standards for the purposes of the rules and practices mentioned in paragraph 9(1), and

b

for ensuring that the determination of those standards is done independently of the body.

Arrangements for setting technical standards

22

The arrangements referred to in paragraph 10(2) are appropriate arrangements—

a

for the determining of standards for the purposes of the rules and practices mentioned in paragraph 10(1), and

b

for ensuring that the determination of those standards is done independently of the body.

F1Arrangements for setting standards relating to public interest entity reporting requirements

Annotations:
Amendments (Textual)

22A

The arrangements referred to in paragraph 10B(3) are appropriate arrangements—

a

for the determining of standards for the purposes of the rules and practices mentioned in paragraph 10B(1), and

b

for ensuring that the determination of those standards is done independently of the body.

Arrangements for setting standards relating to public interest entity independence requirements

22B

The arrangements referred to in paragraph 10C(2) are appropriate arrangements—

a

for the determining of standards for the purposes of the rules and practices mentioned in paragraph 10C(1), and

b

for ensuring that the determination of those standards is done independently of the body.

Arrangements for independent monitoring of audits of listed companies and other major bodies

23

1

The arrangements referred to in paragraph 13(1) are appropriate arrangements—

a

for enabling the performance by members of the body of statutory audit functions in respect of major audits to be monitored by means of inspections carried out under the arrangements, and

b

for ensuring that the carrying out of such monitoring and inspections is done independently of the body.

2

In this paragraph “major audit” and “statutory audit function” have the same meaning as in paragraph 13.

F2Arrangements for independent monitoring of third country audits

Annotations:
Amendments (Textual)

23A

1

The arrangements referred to in paragraph 13(1)(ba) are appropriate arrangements—

a

for enabling the performance by members of the body of third country audit functions to be monitored by means of inspections carried out under the arrangements, and

b

for ensuring that the carrying out of such monitoring and inspections is done independently of the body.

2

Those arrangements must provide that the body performing the inspections—

a

may decide that an inspection referred to in sub-paragraph (1) is not required, or that part of an inspection is not required, in relation to a member, and

b

may direct that the arrangements referred to in sub-paragraph (3) apply in relation to the member or apply to such extent as may be specified in the direction.

3

The supervisory body must have adequate arrangements for enabling the performance by its members of third country audit functions to be monitored by means of inspections for cases where a direction is given under sub-paragraph (2)(b).

4

In this paragraph “third country audit function” means any function related to the audit of a UK-traded non-EEA company.

Arrangements for independent investigation for disciplinary purposes of public interest cases

24

1

The arrangements referred to in paragraph 16(1) are appropriate arrangements—

a

for the carrying out of investigations into public interest cases arising in connection with the performance of statutory audit functions by members of the body,

b

for the holding of disciplinary hearings relating to members of the body which appear to be desirable following the conclusion of such investigations,

c

for requiring such hearings to be held in public except where the interests of justice otherwise require,

d

for the persons before whom such hearings have taken place to decide whether (and, if so, what) disciplinary action should be taken against the members to whom the hearings related, and

e

for ensuring that the carrying out of those investigations, the holding of those hearings and the taking of those decisions are done independently of the body.

2

In this paragraph—

  • “public interest cases” means matters which raise or appear to raise important issues affecting the public interest;

  • “statutory audit function” means any function performed as a statutory auditor.

Supplementary: arrangements to operate independently of body

25

1

This paragraph applies for the purposes of—

a

paragraph 21(b),

b

paragraph 22(b),

c

paragraph 23(1)(b), or

d

paragraph 24(1)(e).

2

Arrangements are not to be regarded as appropriate for the purpose of ensuring that a thing is done independently of the body unless they are designed to ensure that the body—

a

will have no involvement in the appointment or selection of any of the persons who are to be responsible for doing that thing, and

b

will not otherwise be involved in the doing of that thing.

3

Sub-paragraph (2) imposes a minimum requirement and does not preclude the possibility that additional criteria may need to be satisfied in order for the arrangements to be regarded as appropriate for the purpose in question.

Supplementary: funding of arrangements

26

The body must pay any of the costs of maintaining any arrangements within paragraph 21, 22, 23 or 24 which the arrangements provide are to be paid by it.

Supplementary: scope of arrangement

27

Arrangements may qualify as arrangements within any of paragraphs 21, 22, 23 and 24 even though the matters for which they provide are more extensive in any respect than those mentioned in the applicable paragraph.