• Part 15 Part 15 Auditors and Actuaries

    • 188. Cooperation with auditors

      (1) The Regulator may have arrangements for —
      (a) the sharing with auditors of Authorised Persons or Recognised Bodies of information that the Regulator is not prevented from disclosing; and
      (b) the exchange of opinions with auditors of Authorised Persons or Recognised Bodies.

    • 189. Appointment

      (1) The Regulator may make Rules requiring Authorised Persons, Recognised Bodies or Reporting Entities or any particular class thereof —
      (a) to appoint —
      (i) an auditor; or
      (ii) an actuary; and
      (b) to produce periodic financial reports; and
      (c) to have them reported on by an auditor or an actuary.
      (2) The Regulator may make Rules —
      (a) imposing such duties on auditors referred to in subsection (1) as may be Specified; and
      (b) imposing such duties on actuaries referred to in subsection (1) as may be Specified.
      (3) Rules under subsection (1) may make provision —
      (a) specifying the manner in which and time within which an auditor or actuary is to be Appointed;
      (b) requiring the Regulator to be notified of an appointment;
      (c) enabling the Regulator to make an appointment if no appointment has been made or notified;
      (d) as to the term of office, remuneration, removal and resignation of an auditor or actuary.
      (4) An auditor or actuary Appointed as a result of Rules under subsection (1), or on whom duties are imposed by Rules under subsection (2) —
      (a) must act in accordance with such provision as may be made by Rules; and
      (b) is to have such powers in connection with the discharge of his functions as may be provided by Rules.

    • 190. Access to books etc.

      An Appointed auditor of, or an Appointed actuary acting for, an Authorised Person, Recognised Body or Reporting Entity —

      (a) has a right of access to the books, accounts and records of the Authorised Person, Recognised Body or Reporting Entity; and
      (b) is entitled to require from the officers of the Authorised Person, Recognised Body or Reporting Entity such information and explanations as he reasonably considers necessary for the performance of his duties as auditor or actuary.

    • 191. Information given by auditor or actuary to the Regulator

      (1) This section applies to a person who is, or has been, an auditor of an Authorised Person, Recognised Body or Reporting Entity, Appointed pursuant to Rules made under this Part.
      (2) This section also applies to a person who is, or has been, an actuary acting for an Authorised Person, Recognised Body or Reporting Entity and Appointed pursuant to Rules made under this Part.
      (3) An auditor or actuary does not contravene any duty to which he is subject merely because he gives to the 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, Recognised Body or Reporting Entity; 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 the Regulator.
      (4) Subsection (3) applies whether or not the auditor or actuary is responding to a request from the Regulator.
      (5) The Regulator may make Rules prescribing circumstances in which an auditor or actuary must communicate matters to the Regulator as mentioned in subsection (3).
      (6) It is the duty of an auditor or actuary to whom any such Rules apply to communicate a matter to the Regulator or any other person or body in the circumstances prescribed by the Rules.

    • 192. Information given by auditor or actuary to the Regulator: persons with close links

      (1) This section applies to a person who —
      (a) is, or has been, an auditor of an Authorised Person, Recognised Body or Reporting Entity, Appointed pursuant to Rules made under this Part; and
      (b) is, or has been, an auditor of a person who has close links with the Authorised Person, Recognised Body or Reporting Entity ("CL").
      (2) This section also applies to a person who —
      (a) is, or has been, an actuary acting for an Authorised Person, Recognised Body or Reporting Entity and Appointed pursuant to Rules made under this Part; and
      (b) is, or has been, an actuary acting for a person ("CL") who has close links with the Authorised Person, Recognised Body or Reporting Entity.
      (3) An auditor or actuary does not contravene any duty to which he is subject merely because he gives to the Regulator —
      (a) information on a matter concerning the Authorised Person, Recognised Body or Reporting Entity 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 the Regulator.
      (4) Subsection (3) applies whether or not the auditor or actuary is responding to a request from the Regulator.
      (5) The Regulator may make Rules prescribing circumstances in which an auditor or actuary must communicate matters to the Regulator as mentioned in subsection (3).
      (6) It is the duty of an auditor or actuary to whom any such Rules apply to communicate a matter to the Regulator or any other person or body in the circumstances prescribed by the Rules.
      (7) CL has close links with the Authorised Person, Recognised Body or Reporting Entity 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.

    • 193. Reports to the Regulator

      An Appointed auditor must communicate to the Regulator information on, or his opinion on, matters mentioned in sections 191(3) and 192(3) in the following circumstances —

      (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 requirement imposed by or under these Regulations that applies to the person concerned; and
      (ii) that contravention may be of material significance to the Regulator in determining whether to exercise, in relation to the person concerned, any of its powers;
      (b) the auditor reasonably believes that the information on, or his opinion on, those matters may be of material significance to the Regulator in determining whether the person concerned satisfies and will continue to satisfy the Threshold Conditions or, in the case of a Recognised Body, the Recognition Requirements applicable to that person;
      (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) have been properly prepared in accordance with the Companies Regulations 2015 or, where applicable, give a true and fair view of the matters referred to in section 467(3)(a) (Auditor's report on Company's annual accounts) of those Regulations;
      (ii) have been prepared so as to conform with the requirements of Rules made under these Regulations where the auditor is, by Rules made under section 189, required to make such a statement; or
      (iii) where applicable, the auditor is required to state in his report in relation to the person concerned any of the facts referred to in subsection (2), (3) or (5) of section 469 (Duties of auditor) of the Companies Regulations 2015.

    • 194. Duty of auditor or actuary resigning etc. to give notice

      (1) This section applies to an auditor or actuary to whom section 191 applies.
      (2) He must without delay notify the Regulator if he —
      (a) is removed from office by an Authorised Person, Recognised Body or Reporting Entity;
      (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 Regulator —
      (a) of any matter connected with his so ceasing which he thinks ought to be drawn to the Regulator's attention; or
      (b) that there is no such matter.

    • 195. Provision of false or misleading information to auditor or actuary

      A person must not knowingly or recklessly give an Appointed auditor or actuary information which is false or misleading in a material particular.