PART 4Amendments to the Companies Act 2006

Amendments to Part 42 of the Companies Act 200613

1

Part 42 of the Companies Act 2006 is amended as follows.

2

In section 1210 (meaning of “statutory auditor” etc)43—

a

for subsection (1)(c) substitute—

c

a person appointed as auditor of a friendly society under section 72 of or Schedule 14 to the Friendly Societies Act 199244, where that society is—

i

an insurer, or

ii

an issuer whose transferable securities are admitted to trading on a regulated market;

b

in subsection (3), at the appropriate places insert—

  • “issuer” has the same meaning as in Part 6 of the Financial Services and Markets Act 200045 (see section 102A(6)46);

  • “regulated market” has the same meaning as in Part 6 of the Financial Services and Markets Act 2000 (see section 103(1)47).

3

In section 1217 (supervisory bodies), in subsection (1A)48—

a

for “officer) and” substitute “officer), ”

b

after “of information)” insert “ and paragraph 12(3)(b)(v) (temporary prohibition from exercising functions in a firm)”.

4

In section 1219 (appropriate qualifications)49—

a

in subsection (2)(c), for “approves his qualification” substitute “approved his qualification before 1st October 2018”;

b

omit subsection (3).

5

In section 1253D (restriction on transfer of audit working papers to third countries)50, after subsection (2)(g), insert—

h

the Comissão de Valores Mobiliários of Brazil;

i

the Dubai Financial Service Authority of Dubai International Financial Centre;

j

the Registrar of Companies of Guernsey;

k

the Finance Professions Supervisory Centre of Indonesia;

l

the Isle of Man Financial Services Authority;

m

the Jersey Financial Services Commission;

n

the Audit Oversight Board of Malaysia;

o

the Independent Regulatory Board for Auditors of South Africa;

p

the Financial Services Commission of South Korea;

q

the Financial Supervisory Service of South Korea;

r

the Financial Supervisory Commission of Taiwan;

s

the Securities and Exchange Commission of Thailand.

6

In section 1253E (working arrangements for transfer of papers)51, in subsection (8), for “an approved” to “(f) or (g)” substitute “the Australian Securities and Investments Commission”.

7

In section 1254 (directions to comply with international obligations), for paragraph (a) of subsection (1) substitute—

a

that any action proposed to be taken by—

i

a recognised supervisory body,

ii

a recognised qualifying body,

iii

a person keeping a register of auditors, or part of such a register, in accordance with regulations under section 1239(1),

iv

a body exercising functions under arrangements within Schedule 12,

v

the Independent Supervisor,

vi

the competent authority, or

vii

a body designated by order under section 1252,

would be incompatible with EU obligations or any other international obligations of the United Kingdom, or

8

In Schedule 10 (recognised supervisory bodies)—

a

in paragraph 6(2C), for “(1B)(b)” substitute “(1A)(b)”;

b

in paragraph 16AA52, at the beginning of paragraph (b) insert “in the case of an approved third country competent authority listed in section 1253D(2)(a), (b), (c), (d) or (e), ”.

9

For paragraph 6253 in Part 2 of Schedule 11A (specified descriptions of types of permitted information disclosure)54 substitute—

62

A disclosure for the purpose of making available to the public information relating to inspections carried out under regulation 9 (monitoring of audits by the competent authority) of the Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), provided such information does not identify any audited person.