1033. Effect of ineligibility

(1) No person may act as an auditor of an audited person if he is ineligible for appointment as an auditor.
(2) If at any time during his term of office an auditor becomes ineligible for appointment as an auditor, he must immediately—
(a) resign his office (with immediate effect), and
(b) give notice in writing to the audited person that he has resigned by reason of his
becoming ineligible for appointment.
(3) A person will commit a contravention of these Regulations if—
(a) he acts as an auditor in contravention of subsection (1), or
(b) he fails to give the notice mentioned in paragraph (b) of subsection (2) in accordance with that subsection.
(4) A person who commits the contravention referred to in subsection (3) shall be liable to up to a level 6 fine.
(5) In proceedings against a person for any contravention under this section it is a defence for him to show that he did not know and had no reason to believe that he was, or had become, ineligible for appointment as an auditor.