2001 No. 2587
The Financial Services and Markets Act 2000 (Communications by Auditors) Regulations 2001
Made
Laid before Parliament
Coming into force
Citation, commencement and interpretationI21
1
These Regulations may be cited as the Financial Services and Markets Act 2000 (Communications by Auditors) Regulations 2001 and come into force on the day on which section 19 of the Act (the general prohibition) comes into force.
2
In these Regulations—
“the Act” means the Financial Services and Markets Act 2000;
“the person concerned” means—
- a
in relation to an auditor of an authorised person F4, recognised investment exchange or recognised clearing house, that authorised person F4, recognised investment exchange or recognised clearing house;
- b
in relation to an auditor of a person who has close links (within the meaning of section 343 of the Act) with an authorised person F4, recognised investment exchange or recognised clearing house, that authorised person F4, recognised investment exchange or recognised clearing house;
- a
“relevant requirement” means—
- a
a requirement which is imposed by or under any provision of the Act other than Part VI (listing) and which relates to authorisation under the Act (whether by way of permission under Part IV of the Act or otherwise) or to the carrying on of any regulated activity; F5...
- aa
F6a requirement which is a relevant requirement within the meaning of section 312E(2) or (3) of the Act; or
- b
a requirement which is imposed by or under any other Act and whose contravention constitutes an offence which the F7FCA, the PRA or the Bank of England as appropriate has power to prosecute under the Act2.
- a
Circumstances in which an auditor is to communicateI12
1
An auditor to whom section 342 or 343 of the Act applies must communicate to the F8FCA, the PRA or, the Bank of England information on, or his opinion on, matters mentioned in section 342(3)(a) or 343(3)(a) of the Act (matters of which he has, or had, become aware in his capacity as auditor of an authorised person F9, recognised investment exchange or recognised clearing house or as auditor of a person who has close links with an authorised person F9, recognised investment exchange or recognised clearing house) in the following circumstances.
2
The circumstances are that—
a
the auditor reasonably believes that, as regards the person concerned—
i
there is or has been, or may be or may have been, a contravention of any relevant requirement that applies to the person concerned; and
b
the auditor reasonably believes that the information on, or his opinion on, those matters may be of material significance to F12the FCA, the PRA or the Bank of England in determining whether the person concerned satisfies and will continue to satisfy the threshold conditions F13or, in the case of a recognised investment exchange or recognised clearing house, the requirements set out in relation to recognised investment exchanges or (as the case may be) recognised clearing houses under section 286 of the Act (qualifications for recognition);
c
the auditor reasonably believes that the person concerned is not, may not be or may cease to be a going concern;
d
the auditor is precluded from stating in his report that the annual accounts or, where they are required to be made by any of the following provisions, other financial reports of the person concerned—
i
ii
iii
have been prepared so as to conform with the Friendly Societies Act 19926 and the regulations made under it or, where applicable, give a true and fair view of the matters referred to in section 73(5) of that Act;
iv
have been prepared so as to conform with the requirements of the Friendly and Industrial and Provident Societies Act 19687 or, where applicable, give a true and fair view of the matters referred to in section 9(2) and (3) of that Act; or
v
have been prepared so as to conform with the requirements of rules made under the Act where the auditor is, by rules made under section 340 of the Act, required to make such a statement;
as the case may be; or
e
where applicable, the auditor is required to state in his report in relation to the person concerned any of the facts referred to in F3subsection (2), (3) or (5) of section 498 of the Companies Act 2006.
(This note is not part of the Regulations)
Regulations applied (with modifications) (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1, Sch. 1 para. 29 (with reg. 7)