|
| |
|
Supplementary provision with respect to a sufficient period of professional experience |
| |
10 (1) | Periods of theoretical instruction in the fields of finance, law and |
| |
accountancy may be deducted from the required period of professional |
| |
experience, provided the instruction— |
| |
(a) | lasted at least one year, and |
| 5 |
(b) | is attested by an examination recognised by the Secretary of State for |
| |
the purposes of this paragraph; |
| |
| but the period of professional experience may not be so reduced by more |
| |
| |
(2) | The period of professional experience together with the practical training |
| 10 |
required in the case of persons satisfying the requirement in paragraph 7 by |
| |
virtue of having a sufficient period of professional experience must not be |
| |
shorter than the course of theoretical instruction referred to in that |
| |
paragraph and the practical training required in the case of persons |
| |
satisfying the requirement of that paragraph by virtue of having completed |
| 15 |
| |
The body offering the qualification |
| |
11 (1) | The body offering the qualification must have— |
| |
(a) | rules and arrangements adequate to ensure compliance with the |
| |
requirements of paragraphs 6 to 10, and |
| 20 |
(b) | adequate arrangements for the effective monitoring of its continued |
| |
compliance with those requirements. |
| |
(2) | The arrangements must include arrangements for monitoring— |
| |
(a) | the standard of the body’s examinations, and |
| |
(b) | the adequacy of the practical training given by the persons approved |
| 25 |
| |
| |
| |
Arrangements in which registered third country auditors are required to |
| |
| |
Arrangements for independent monitoring of audits of traded non-Community companies |
| 30 |
1 (1) | The arrangements referred to in section 871(1)(a) are appropriate |
| |
| |
(a) | for enabling the performance by the registered third country auditor |
| |
of third country audit functions to be monitored by means of |
| |
inspections carried out under the arrangements, and |
| 35 |
(b) | for ensuring that the carrying out of such monitoring and inspections |
| |
is done independently of the registered third country auditor. |
| |
(2) | In this paragraph “third country audit function” means any function |
| |
performed as a third country auditor. |
| |
|
| |
|
| |
|
Arrangements for independent investigations for disciplinary purposes |
| |
2 (1) | The arrangements referred to in section 871(1)(b) are appropriate |
| |
| |
(a) | for the carrying out of investigations into matters arising in |
| |
connection with the performance of third country audit functions by |
| 5 |
the registered third country auditor, |
| |
(b) | for the holding of disciplinary hearings relating to the registered |
| |
third country auditor which appear to be desirable following the |
| |
conclusion of such investigations, |
| |
(c) | for requiring such hearings to be held in public except where the |
| 10 |
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 registered third country auditor, and |
| |
(e) | for ensuring that the carrying out of those investigations, the holding |
| 15 |
of those hearings and the taking of those decisions are done |
| |
independently of the registered third country auditor. |
| |
| |
“disciplinary action” includes the imposition of a fine; and |
| |
“third country audit function” means any function performed as a third |
| 20 |
| |
Supplementary: arrangements to operate independently of third country auditor |
| |
3 (1) | This paragraph applies for the purposes of— |
| |
(a) | paragraph 1(1)(b), or |
| |
| 25 |
(2) | Arrangements are not to be regarded as appropriate for the purpose of |
| |
ensuring that a thing is done independently of the registered third country |
| |
auditor unless they are designed to ensure that the registered third country |
| |
| |
(a) | will have no involvement in the appointment or selection of any of |
| 30 |
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. |
| 35 |
Supplementary: funding of arrangements |
| |
4 (1) | The registered third country auditor must pay any of the costs of |
| |
maintaining any relevant arrangements which the arrangements provide |
| |
| |
(2) | For this purpose “relevant arrangements” are arrangements within |
| 40 |
paragraph 1 or 2 in which the registered third country auditor is obliged to |
| |
| |
|
| |
|
| |
|
Supplementary: scope of arrangements |
| |
5 | Arrangements may qualify as arrangements within either of paragraphs 1 |
| |
and 2 even though the matters for which they provide are more extensive in |
| |
any respect than those mentioned in the applicable paragraph. |
| |
Specification of particular arrangements by the Secretary of State |
| 5 |
6 (1) | If there exist two or more sets of arrangements within paragraph 1 or within |
| |
paragraph 2, the obligation of a registered third country auditor under |
| |
section 871(1)(a) or (b), as the case may be, is to participate in such set of |
| |
arrangements as the Secretary of State may by order specify. |
| |
(2) | An order under sub-paragraph (1) is subject to negative resolution |
| 10 |
| |
| |
| |
Supplementary provisions with respect to delegation order |
| |
Operation of this Schedule |
| |
1 (1) | This Schedule has effect in relation to a body designated by a delegation |
| 15 |
order under section 881 as follows— |
| |
(a) | paragraphs 2 to 12 have effect in relation to the body where it is |
| |
established by the order; |
| |
(b) | paragraphs 2 and 6 to 11 have effect in relation to the body where it |
| |
| 20 |
(c) | paragraph 13 has effect in relation to the body where it is an existing |
| |
body that is an unincorporated association. |
| |
(2) | In their operation in accordance with sub-paragraph (1)(b), paragraphs 2 |
| |
and 6 apply only in relation to— |
| |
(a) | things done by or in relation to the body in or in connection with the |
| 25 |
exercise of functions transferred to it by the delegation order, and |
| |
(b) | functions of the body which are functions so transferred. |
| |
(3) | Any power conferred by this Schedule to make provision by order is a |
| |
power to make provision by an order under section 881. |
| |
| 30 |
2 | The body is not to be regarded as acting on behalf of the Crown and its |
| |
members, officers and employees are not to be regarded as Crown servants. |
| |
Name, members and chairman |
| |
3 (1) | The body is to be known by such name as may be specified in the delegation |
| |
| 35 |
(2) | The body is to consist of such persons (not being less than eight) as the |
| |
Secretary of State may appoint after such consultation as he thinks |
| |
| |
|
| |
|
| |
|
(3) | The chairman of the body is to be such person as the Secretary of State may |
| |
appoint from among its members. |
| |
(4) | The Secretary of State may make provision by order as to— |
| |
(a) | the terms on which the members of the body are to hold and vacate |
| |
| 5 |
(b) | the terms on which a person appointed as chairman is to hold and |
| |
vacate the office of chairman. |
| |
| |
4 (1) | The body must pay to its chairman and members such remuneration, and |
| |
such allowances in respect of expenses properly incurred by them in the |
| 10 |
performance of their duties, as the Secretary of State may determine. |
| |
(2) | As regards any chairman or member in whose case the Secretary of State so |
| |
determines, the body must pay or make provision for the payment of— |
| |
(a) | such pension, allowance or gratuity to or in respect of that person on |
| |
his retirement or death, or |
| 15 |
(b) | such contributions or other payment towards the provision of such a |
| |
pension, allowance or gratuity, |
| |
| as the Secretary of State may determine. |
| |
| |
(a) | a person ceases to be a member of the body otherwise than on the |
| 20 |
expiry of his term of office, and |
| |
(b) | it appears to the Secretary of State that there are special |
| |
circumstances which make it right for that person to receive |
| |
| |
| the body must make a payment to him by way of compensation of such |
| 25 |
amount as the Secretary of State may determine. |
| |
| |
5 (1) | The delegation order may contain such provision as the Secretary of State |
| |
considers appropriate with respect to the proceedings of the body. |
| |
(2) | The delegation order may, in particular— |
| 30 |
(a) | authorise the body to discharge any functions by means of |
| |
committees consisting wholly or partly of members of the body; |
| |
(b) | provide that the validity of proceedings of the body, or of any such |
| |
committee, is not affected by any vacancy among the members or |
| |
any defect in the appointment of any member. |
| 35 |
| |
6 (1) | The body may retain fees payable to it. |
| |
(2) | The fees must be applied for— |
| |
(a) | meeting the expenses of the body in discharging its functions, and |
| |
(b) | any purposes incidental to those functions. |
| 40 |
(3) | Those expenses include any expenses incurred by the body on such staff, |
| |
accommodation, services and other facilities as appear to it to be necessary |
| |
or expedient for the proper performance of its functions. |
| |
|
| |
|
| |
|
(4) | In prescribing the amount of fees in the exercise of the functions transferred |
| |
to it the body must prescribe such fees as appear to it sufficient to defray |
| |
those expenses, taking one year with another. |
| |
(5) | Any exercise by the body of the power to prescribe fees requires the |
| |
approval of the Secretary of State. |
| 5 |
(6) | The Secretary of State may, after consultation with the body, by order vary |
| |
or revoke any regulations prescribing fees made by the body. |
| |
| |
7 (1) | Regulations or an order made by the body in the exercise of the functions |
| |
transferred to it must be made by instrument in writing, but not by statutory |
| 10 |
| |
(2) | The instrument must specify the provision of this Part of this Act under |
| |
| |
(3) | The Secretary of State may by order impose such requirements as he thinks |
| |
necessary or expedient as to the circumstances and manner in which the |
| 15 |
body must consult on any regulations or order it proposes to make. |
| |
(4) | Nothing in this Part applies to make regulations or an order made by the |
| |
body subject to negative resolution procedure or affirmative resolution |
| |
| |
8 (1) | Immediately after an instrument is made it must be printed and made |
| 20 |
available to the public with or without payment. |
| |
(2) | A person is not to be taken to have contravened any regulation or order if he |
| |
shows that at the time of the alleged contravention the instrument |
| |
containing the regulation or order had not been made available as required |
| |
| 25 |
9 (1) | The production of a printed copy of an instrument purporting to be made by |
| |
the body on which is endorsed a certificate signed by an officer of the body |
| |
authorised by it for the purpose and stating— |
| |
(a) | that the instrument was made by the body, |
| |
(b) | that the copy is a true copy of the instrument, and |
| 30 |
(c) | that on a specified date the instrument was made available to the |
| |
public as required by paragraph 8, |
| |
| is evidence (or, in Scotland, sufficient evidence) of the facts stated in the |
| |
| |
(2) | A certificate purporting to be signed as mentioned in sub-paragraph (1) is to |
| 35 |
be deemed to have been duly signed unless the contrary is shown. |
| |
(3) | Any person wishing in any legal proceedings to cite an instrument made by |
| |
the body may require the body to cause a copy of it to be endorsed with such |
| |
a certificate as is mentioned in this paragraph. |
| |
| 40 |
10 (1) | The body must, at least once in each calendar year for which the delegation |
| |
order is in force, make a report to the Secretary of State on— |
| |
(a) | the discharge of the functions transferred to it, and |
| |
|
| |
|
| |
|
(b) | such other matters as the Secretary of State may by order require. |
| |
(2) | The delegation order may modify subsection (1) as it has effect in relation to |
| |
the calendar year in which the order comes into force or is revoked. |
| |
(3) | The Secretary of State must lay before Parliament copies of each report |
| |
received by him under this paragraph. |
| 5 |
(4) | The following provisions of this paragraph apply as follows— |
| |
(a) | sub-paragraphs (5) and (6) apply only where the body is established |
| |
| |
(b) | sub-paragraphs (7) and (8) apply only where the body is an existing |
| |
| 10 |
(5) | The Secretary of State may, with the consent of the Treasury, give directions |
| |
to the body with respect to its accounts and the audit of its accounts. |
| |
(6) | A person may only be appointed as auditor of the body if he is eligible for |
| |
appointment as a statutory auditor. |
| |
(7) | Unless the body is a company to which section 226 of the Companies Act |
| 15 |
1985 (c. 6) (duty to prepare individual company accounts) applies, the |
| |
Secretary of State may, with the consent of the Treasury, give directions to |
| |
the body with respect to its accounts and the audit of its accounts. |
| |
(8) | Whether or not the body is a company to which section 226 of the |
| |
Companies Act 1985 applies, the Secretary of State may direct that any |
| 20 |
provisions of that Act specified in the directions are to apply to the body, |
| |
with or without any modifications so specified. |
| |
Other supplementary provisions |
| |
11 (1) | The transfer of a function to a body designated by a delegation order does |
| |
not affect anything previously done in the exercise of the function |
| 25 |
transferred; and the resumption of a function so transferred does not affect |
| |
anything previously done in exercise of the function resumed. |
| |
(2) | The Secretary of State may by order make such transitional and other |
| |
supplementary provision as he thinks necessary or expedient in relation to |
| |
the transfer or resumption of a function. |
| 30 |
(3) | The provision that may be made in connection with the transfer of a function |
| |
includes, in particular, provision— |
| |
(a) | for modifying or excluding any provision of this Part of this Act in its |
| |
application to the function transferred; |
| |
(b) | for applying to the body designated by the delegation order, in |
| 35 |
connection with the function transferred, any provision applying to |
| |
the Secretary of State which is contained in or made under any other |
| |
| |
(c) | for the transfer of any property, rights or liabilities from the Secretary |
| |
| 40 |
(d) | for the carrying on and completion by that body of anything in the |
| |
process of being done by the Secretary of State when the order takes |
| |
| |
(e) | for the substitution of that body for the Secretary of State in any |
| |
instrument, contract or legal proceedings. |
| 45 |
|
| |
|
| |
|
(4) | The provision that may be made in connection with the resumption of a |
| |
function includes, in particular, provision— |
| |
(a) | for the transfer of any property, rights or liabilities from that body to |
| |
| |
(b) | for the carrying on and completion by the Secretary of State of |
| 5 |
anything in the process of being done by that body when the order |
| |
| |
(c) | for the substitution of the Secretary of State for that body in any |
| |
instrument, contract or legal proceedings. |
| |
12 | Where a delegation order is revoked, the Secretary of State may by order |
| 10 |
| |
(a) | for the payment of compensation to persons ceasing to be employed |
| |
by the body established by the delegation order; |
| |
(b) | as to the winding up and dissolution of the body. |
| |
13 (1) | This paragraph applies where the body is an unincorporated association. |
| 15 |
(2) | Any relevant proceedings may be brought by or against the body in the |
| |
name of any body corporate whose constitution provides for the |
| |
establishment of the body. |
| |
(3) | In sub-paragraph (2) “relevant proceedings” means proceedings brought in |
| |
or in connection with the exercise of any transferred function. |
| 20 |
(4) | In relation to proceedings brought as mentioned in sub-paragraph (2), any |
| |
reference in paragraph 11(3)(e) or (4)(c) to the body replacing or being |
| |
replaced by the Secretary of State in any legal proceedings is to be read with |
| |
the appropriate modifications. |
| |
| 25 |
| |
Statutory auditors: consequential amendments |
| |
Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27) |
| |
1 (1) | Section 16 of the Companies (Audit, Investigations and Community |
| |
Enterprise) Act 2004 (grants to bodies concerned with accounting standards |
| |
etc) is amended as follows. |
| 30 |
| |
(a) | in paragraph (f) for “paragraph 17” to the end substitute “paragraph |
| |
21, 22, 23(1) or 24(1) of Schedule 10 to the Company Law Reform Act |
| |
| |
(b) | in paragraph (g) for “Part 2 of that Act” substitute “Part 35 of that |
| 35 |
| |
(3) | In subsection (5), in the definition of “professional accountancy body”— |
| |
(a) | in paragraph (a) for “Part 2 of the Companies Act 1989 (c. 40)” |
| |
substitute “Part 35 of the Company Law Reform Act 2006”, and |
| |
(b) | in paragraph (b) for “section 32” substitute “section 849”. |
| 40 |
|
| |
|