|
| |
| |
(6) | The Secretary of State may require any information to be furnished under |
| |
this paragraph to be in such form or verified in such manner as he may |
| |
| |
(7) | In the case of examination standards, the verification required may include |
| |
independent moderation of the examinations over such a period as the |
| 5 |
Secretary of State considers necessary. |
| |
(8) | Every application must be accompanied by— |
| |
(a) | a copy of the applicant’s rules, and |
| |
(b) | a copy of any guidance issued by the applicant in writing. |
| |
(9) | The reference in sub-paragraph (8)(b) to guidance issued by the applicant is |
| 10 |
a reference to any guidance or recommendation— |
| |
(a) | issued or made by it to all or any class of persons holding or seeking |
| |
to hold a qualification, or approved or seeking to be approved by the |
| |
body for the purposes of giving practical training, |
| |
(b) | relevant for the purposes of this Part of this Act, and |
| 15 |
(c) | intended to have continuing effect, |
| |
| including any guidance or recommendation relating to a matter within sub- |
| |
| |
(10) | The matters within this sub-paragraph are— |
| |
(a) | admission to or expulsion from a course of study leading to a |
| 20 |
| |
(b) | the award or deprivation of a qualification, and |
| |
(c) | the approval of a person for the purposes of giving practical training |
| |
or the withdrawal of such an approval, |
| |
| so far as relevant for the purposes of this Part of this Act. |
| 25 |
Grant and refusal of recognition |
| |
2 (1) | The Secretary of State may, on an application duly made in accordance with |
| |
paragraph 1 and after being furnished with all such information as he may |
| |
require under that paragraph, make or refuse to make a recognition order in |
| |
respect of the qualification in relation to which the application was made. |
| 30 |
(2) | The Secretary of State may make a recognition order only if it appears to |
| |
him, from the information furnished by the applicant and having regard to |
| |
any other information in his possession, that the requirements of Part 2 of |
| |
this Schedule are satisfied in relation to the qualification. |
| |
(3) | Where the Secretary of State refuses an application for a recognition order he |
| 35 |
must give the applicant a written notice to that effect specifying which |
| |
requirements, in his opinion, are not satisfied. |
| |
(4) | A recognition order must state the date on which it takes effect. |
| |
R evocation of recognition |
| |
3 (1) | A recognition order may be revoked by a further order made by the |
| 40 |
Secretary of State if at any time it appears to him— |
| |
(a) | that any requirement of Part 2 of this Schedule is not satisfied in |
| |
relation to the qualification to which the recognition order relates, or |
| |
| |
| |
|
| |
| |
(b) | that the qualifying body has failed to comply with any obligation |
| |
imposed on it by or by virtue of this Part of this Act. |
| |
(2) | An order revoking a recognition order must state the date on which it takes |
| |
effect, which must be after the period of three months beginning with the |
| |
date on which the revocation order is made. |
| 5 |
(3) | Before revoking a recognition order the Secretary of State must— |
| |
(a) | give written notice of his intention to do so to the qualifying body, |
| |
(b) | take such steps as he considers reasonably practicable for bringing |
| |
the notice to the attention of persons holding the qualification or in |
| |
the course of studying for it, and |
| 10 |
(c) | publish the notice in such manner as he thinks appropriate for |
| |
bringing it to the attention of any other persons who are in his |
| |
opinion likely to be affected. |
| |
(4) | A notice under sub-paragraph (3) must— |
| |
(a) | state the reasons for which the Secretary of State proposes to act, and |
| 15 |
(b) | give particulars of the rights conferred by sub-paragraph (5). |
| |
(5) | A person within sub-paragraph (6) may, within the period of three months |
| |
beginning with the date of service or publication or such longer period as the |
| |
Secretary of State may allow, make written representations to the Secretary |
| |
of State and, if desired, oral representations to a person appointed for that |
| 20 |
purpose by the Secretary of State. |
| |
(6) | The persons within this sub-paragraph are— |
| |
(a) | the qualifying body on which a notice is served under sub-paragraph |
| |
| |
(b) | any person holding the qualification or in the course of studying for |
| 25 |
| |
(c) | any other person who appears to the Secretary of State to be affected. |
| |
(7) | The Secretary of State must have regard to any representations made in |
| |
accordance with subsection (5) in determining whether to revoke the |
| |
| 30 |
(8) | If in any case the Secretary of State considers it essential to do so in the public |
| |
interest he may revoke a recognition order without regard to the restriction |
| |
imposed by sub-paragraph (2), even if— |
| |
(a) | no notice has been given or published under sub-paragraph (3), or |
| |
(b) | the period of time for making representations in pursuance of such a |
| 35 |
| |
(9) | An order revoking a recognition order may contain such transitional |
| |
provision as the Secretary of State thinks necessary or expedient. |
| |
(10) | A recognition order may be revoked at the request or with the consent of the |
| |
qualifying body and any such revocation is not subject to— |
| 40 |
(a) | the restrictions imposed by sub-paragraphs (1) and (2), or |
| |
(b) | the requirements of sub-paragraphs (3) to (5) and (7). |
| |
(11) | On making an order revoking a recognition order the Secretary of State |
| |
| |
(a) | give written notice of the making of the order to the qualifying body, |
| 45 |
| |
| |
|
| |
| |
(b) | take such steps as he considers reasonably practicable for bringing |
| |
the making of the order to the attention of persons holding the |
| |
qualification or in the course of studying for it, and |
| |
(c) | publish a notice of the making of the order in such manner as he |
| |
thinks appropriate for bringing it to the attention of any other |
| 5 |
persons who are in his opinion likely to be affected. |
| |
| |
4 | A recognition order made and not revoked under— |
| |
(a) | paragraph 2(1) of Schedule 12 to the Companies Act 1989 (c. 40), or |
| |
(b) | paragraph 2(1) of Schedule 12 to the Companies (Northern Ireland) |
| 10 |
Order 1990 (S.I. 1990/593 (N.I. 5)), |
| |
| before the commencement of this Chapter of this Part of this Act is to have |
| |
effect after the commencement of this Chapter as a recognition order made |
| |
under paragraph 2(1) of this Schedule. |
| |
Orders not statutory instruments |
| 15 |
5 | Orders under this Part of this Schedule shall not be made by statutory |
| |
| |
| |
Requirements for recognition of a professional qualification |
| |
| 20 |
6 (1) | The qualification must only be open to persons who— |
| |
(a) | have attained university entrance level, or |
| |
(b) | have a sufficient period of professional experience. |
| |
(2) | In relation to a person who has not been admitted to a university or other |
| |
similar establishment in the United Kingdom, “attaining university entrance |
| 25 |
| |
(a) | being educated to such a standard as would entitle him to be |
| |
considered for such admission on the basis of— |
| |
(i) | academic or professional qualifications obtained in the |
| |
United Kingdom and recognised by the Secretary of State to |
| 30 |
be of an appropriate standard, or |
| |
(ii) | academic or professional qualifications obtained outside the |
| |
United Kingdom which the Secretary of State considers to be |
| |
of an equivalent standard, or |
| |
(b) | being assessed, on the basis of written tests of a kind appearing to the |
| 35 |
Secretary of State to be adequate for the purpose (with or without |
| |
oral examination), as of such a standard of ability as would entitle |
| |
him to be considered for such admission. |
| |
(3) | The assessment, tests and oral examination referred to in sub-paragraph |
| |
(2)(b) may be conducted by— |
| 40 |
(a) | the qualifying body, or |
| |
(b) | some other body approved by the Secretary of State. |
| |
| |
| |
|
| |
| |
(4) | The reference in sub-paragraph (1)(b) to “a sufficient period of professional |
| |
experience” is to not less than seven years’ experience in a professional |
| |
capacity in the fields of finance, law and accountancy. |
| |
Requirement for theoretical instruction or professional experience |
| |
7 (1) | The qualification must be restricted to persons who— |
| 5 |
(a) | have completed a course of theoretical instruction in the subjects |
| |
prescribed for the purposes of paragraph 8, or |
| |
(b) | have a sufficient period of professional experience. |
| |
(2) | The reference in sub-paragraph (1)(b) to “a sufficient period of professional |
| |
experience” is to not less than seven years’ experience in a professional |
| 10 |
capacity in the fields of finance, law and accountancy. |
| |
| |
8 (1) | The qualification must be restricted to persons who have passed an |
| |
examination (at least part of which is in writing) testing— |
| |
(a) | theoretical knowledge of the subjects prescribed for the purposes of |
| 15 |
this paragraph by regulations made by the Secretary of State, and |
| |
(b) | ability to apply that knowledge in practice, |
| |
| and requiring a standard of attainment at least equivalent to that required to |
| |
obtain a degree from a university or similar establishment in the United |
| |
| 20 |
(2) | The qualification may be awarded to a person without his theoretical |
| |
knowledge of a subject being tested by examination if he has passed a |
| |
university or other examination of equivalent standard in that subject or |
| |
holds a university degree or equivalent qualification in it. |
| |
(3) | The qualification may be awarded to a person without his ability to apply |
| 25 |
his theoretical knowledge of a subject in practice being tested by |
| |
examination if he has received practical training in that subject which is |
| |
attested by an examination or diploma recognised by the Secretary of State |
| |
for the purposes of this paragraph. |
| |
(4) | Regulations under this paragraph are subject to negative resolution |
| 30 |
| |
| |
9 (1) | The qualification must be restricted to persons who have completed at least |
| |
three years’ practical training of which— |
| |
(a) | part was spent being trained in statutory audit work, and |
| 35 |
(b) | a substantial part was spent being trained in statutory audit work or |
| |
other audit work of a description approved by the Secretary of State |
| |
as being similar to statutory audit work. |
| |
(2) | For the purpose of sub-paragraph (1) “statutory audit work” includes the |
| |
work of a person appointed as the auditor of a person under the law of a |
| 40 |
country or territory outside the United Kingdom where it appears to the |
| |
Secretary of State that the law and practice with respect to the audit of |
| |
accounts is similar to that in the United Kingdom. |
| |
| |
| |
|
| |
| |
(3) | The training must be given by persons approved by the body offering the |
| |
qualification as persons whom the body is satisfied, in the light of |
| |
undertakings given by them and the supervision to which they are subject |
| |
(whether by the body in itself or some other body or organisation), will |
| |
provide adequate training. |
| 5 |
(4) | At least two-thirds of the training must be given by a person— |
| |
(a) | eligible for appointment as a statutory auditor, or |
| |
(b) | eligible for a corresponding appointment as an auditor under the law |
| |
of a member State, or part of a member State, other than the United |
| |
| 10 |
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 |
| 15 |
(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 |
| 20 |
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 |
| 25 |
| |
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 |
| 30 |
(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 |
| 35 |
| |
| |
| |
Arrangements in which registered third country auditors are required to |
| |
| |
Arrangements for independent monitoring of audits of traded non-Community companies |
| 40 |
1 (1) | The arrangements referred to in section 1206(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 |
| |
(b) | for ensuring that the carrying out of such monitoring and inspections |
| |
is done independently of the registered third country auditor. |
| 5 |
(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 1206(1)(b) are appropriate |
| |
| 10 |
(a) | for the carrying out of investigations into matters arising in |
| |
connection with the performance of third country audit functions by |
| |
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 |
| 15 |
conclusion of such investigations, |
| |
(c) | for requiring such hearings to be held in public except where the |
| |
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 |
| 20 |
against the registered third country auditor, and |
| |
(e) | for ensuring that the carrying out of those investigations, the holding |
| |
of those hearings and the taking of those decisions are done |
| |
independently of the registered third country auditor. |
| |
| 25 |
“disciplinary action” includes the imposition of a fine; and |
| |
“third country audit function” means any function performed as a third |
| |
| |
Supplementary: arrangements to operate independently of third country auditor |
| |
3 (1) | This paragraph applies for the purposes of— |
| 30 |
(a) | paragraph 1(1)(b), or |
| |
| |
(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 |
| 35 |
| |
(a) | will have no involvement in the appointment or selection of any of |
| |
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 |
| 40 |
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. |
| |
| |
| |
|
| |
| |
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 |
| 5 |
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 |
| 10 |
any respect than those mentioned in the applicable paragraph. |
| |
Specification of particular arrangements by the Secretary of State |
| |
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 1206(1)(a) or (b), as the case may be, is to participate in such set of |
| 15 |
arrangements as the Secretary of State may by order specify. |
| |
(2) | An order under sub-paragraph (1) is subject to negative resolution |
| |
| |
| |
| |
Supplementary provisions with respect to delegation order |
| 20 |
Operation of this Schedule |
| |
1 (1) | This Schedule has effect in relation to a body designated by a delegation |
| |
order under section 1216 as follows— |
| |
(a) | paragraphs 2 to 12 have effect in relation to the body where it is |
| |
established by the order; |
| 25 |
(b) | paragraphs 2 and 6 to 11 have effect in relation to the body where it |
| |
| |
(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 |
| 30 |
and 6 apply only in relation to— |
| |
(a) | things done by or in relation to the body in or in connection with the |
| |
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 |
| 35 |
power to make provision by an order under section 1216. |
| |
| |
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. |
| |
| |
| |
|
