1.—(1) A supervisory body may apply to the Department for an order declaring it to be a recognised supervisory body for the purposes of Part III of this Order.
(2) Any such application—
(a)shall be made in such manner as the Department may direct, and
(b)shall be accompanied by such information as the Department may reasonably require for the purpose of determining the application.
(3) At any time after receiving an application and before determining it the Department may require the applicant to furnish additional information.
(4) The directions and requirements given or imposed under sub‐paragraphs (2) and (3) may differ as between different applications.
(5) Any information to be furnished to the Department under this paragraph shall, if it so requires, be in such form or verified in such manner as it may specify.
(6) Every application shall be accompanied by a copy of the applicant's rules and of any guidance issued by the applicant which is intended to have continuing effect and is issued in writing or other legible form.
2.—(1) The Department may, on an application duly made in accordance with paragraph 1 and after being furnished with all such information as it may require under that paragraph, make or refuse to make an order (a “recognition order”) declaring the applicant to be a recognised supervisory body for the purposes of Part III of this Order.
(2) The Department shall not make a recognition order unless it appears to it, from the information furnished by the body and having regard to any other information in its possession, that the requirements of Part II of this Schedule are satisfied as respects that body.
(3) The Department may refuse to make a recognition order in respect of a body if it considers that its recognition is unnecessary having regard to the existence of one or more other bodies which maintain and enforce rules as to the appointment and conduct of company auditors and which have been or are likely to be recognised.
(4) Where the Department refuses an application for a recognition order it shall give the applicant a written notice to that effect specifying which requirements in the opinion of the Department are not satisfied or stating that the application is refused on the ground mentioned in sub‐paragraph (3).
(5) A recognition order shall state the date on which it takes effect.
3.—(1) A recognition order may be revoked by a further order made by the Department if at any time it appears to it—
(a)that any requirement of Part II of this Schedule is not satisfied in the case of the body to which the recognition order relates ( “the recognised body”),
(b)that the recognised body has failed to comply with any obligation to which it is subject by virtue of Part III of this Order, or
(c)that the continued recognition of the body is undesirable having regard to the existence of one or more other bodies which have been or are to be recognised.
(2) An order revoking a recognition order shall state the date on which it takes effect and that date shall not be earlier than 3 months after the day on which the revocation order is made.
(3) Before revoking a recognition order the Department shall give written notice of its intention to do so to the recognised body, take such steps as it considers reasonably practicable for bringing the notice to the attention of members of the body and publish it in such manner as it thinks appropriate for bringing it to the attention of any other persons who are in its opinion likely to be affected.
(4) A notice under sub‐paragraph (3) shall state the reasons for which the Department proposes to act and give particulars of the rights conferred by sub‐paragraph (5).
(5) A body on which a notice is served under sub‐paragraph (3), any member of the body and any other person who appears to the Department to be affected may within 3 months after the date of service or publication, or within such longer time as the Department may allow, make written representations to the Department and, if desired, oral representations to a person appointed for that purpose by the Department; and the Department shall have regard to any representations made in accordance with this sub‐paragraph in determining whether to revoke the recognition order.
(6) If in any case the Department considers it essential to do so in the public interest it may revoke a recognition order without regard to the restriction imposed by sub‐paragraph (2) and notwithstanding that no notice has been given or published under sub‐paragraph (3) or that the time for making representations in pursuance of such a notice has not expired.
(7) An order revoking a recognition order may contain such transitional provisions as the Department thinks necessary or expedient.
(8) A recognition order may be revoked at the request or with the consent of the recognised body and any such revocation shall not be subject to the restrictions imposed by sub‐paragraphs (1) and (2) or the requirements of sub‐paragraphs (3) to (5).
(9) On making an order revoking a recognition order the Department shall give the body written notice of the making of the order, take such steps as it considers reasonably practicable for bringing the making of the order to the attention of members of the body and publish a notice of the making of the order in such manner as it thinks appropriate for bringing it to the attention of any other persons who are in its opinion likely to be affected.