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Part XXIIU.K. Auditors and Actuaries

Modifications etc. (not altering text)

InformationU.K.

341 Access to books etc.U.K.

(1)An appointed auditor of, or an appointed actuary acting for, an authorised person—

(a)has a right of access at all times to the authorised person’s books, accounts and vouchers; and

(b)is entitled to require from the authorised person’s officers such information and explanations as he reasonably considers necessary for the performance of his duties as auditor or actuary.

(2)Appointed” means appointed under or as a result of this Act.

Modifications etc. (not altering text)

C2Ss. 341-346 applied (with modifications) (1.11.2009) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2)(c), 95, Sch. 5 para. 4 (with reg. 3)

342 Information given by auditor or actuary to [F1a regulator].U.K.

(1)This section applies to a person who is, or has been, an auditor of an authorised person [F2or recognised investment exchange,] appointed under or as a result of a statutory provision.

(2)This section also applies to a person who is, or has been, an actuary acting for an authorised person and appointed under or as a result of a statutory provision.

(3)An auditor or actuary does not contravene any duty to which he is subject merely because he gives to [F3a 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 [F4or recognised investment exchange], 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 [F5that regulator].

(4)Subsection (3) applies whether or not the auditor or actuary is responding to a request from the [F6regulator].

(5)The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to [F7a regulator] as mentioned in subsection (3).

(6)It is the duty of an auditor or actuary to whom any such regulations apply to communicate a matter to [F7a regulator] in the circumstances prescribed by the regulations.

[F8(6A)If the authorised person concerned is a credit institution or an investment firm, and an auditor or actuary communicates a matter to a regulator in accordance with the regulations, the matter must be disclosed simultaneously to the management body of the authorised person, unless there are compelling reasons not to do so.]

(7)The matters to be communicated to [F7a regulator] in accordance with the regulations may include matters relating to persons other than the authorised person [F9or recognised investment exchange] concerned.

[F10(8)In subsection (6A) “credit institution” and “investment firm” have the same meaning as in Article 4(1) of the capital requirements regulation.]

Textual Amendments

F1Words in s. 342 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 4(6) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications etc. (not altering text)

C3Ss. 341-346 applied (with modifications) (1.11.2009) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2)(c), 95, Sch. 5 para. 4 (with reg. 3)

Commencement Information

I1S. 342 wholly in force at 1.12.2001; s. 342 not in force at Royal Assent see s. 431(2); s. 342(5) in force at 25.2.2001 by S.I. 2001/516, art. 2(a), Sch. Pt. 1; s. 342 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

343 Information given by auditor or actuary to [F11a regulator]: persons with close links.U.K.

(1)This section applies to a person who—

(a)is, or has been, an auditor of an authorised person [F12or recognised investment exchange,] appointed under or as a result of a statutory provision; and

(b)is, or has been, an auditor of a person (“CL”) who has close links with the authorised person [F13or recognised investment exchange].

(2)This section also applies to a person who—

(a)is, or has been, an actuary acting for an authorised person and appointed under or as a result of a statutory provision; and

(b)is, or has been, an actuary acting for a person (“CL”) who has close links with the authorised person.

(3)An auditor or actuary does not contravene any duty to which he is subject merely because he gives to [F14a regulator]

(a)information on a matter concerning the authorised person [F15or recognised investment exchange] 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 [F16that regulator].

(4)Subsection (3) applies whether or not the auditor or actuary is responding to a request from the [F17regulator].

(5)The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to [F18a regulator] as mentioned in subsection (3).

(6)It is the duty of an auditor or actuary to whom any such regulations apply to communicate a matter to [F18a regulator] in the circumstances prescribed by the regulations.

[F19(6A)If the authorised person concerned is a credit institution or an investment firm, and an auditor or actuary communicates a matter to a regulator in accordance with the regulations, the matter must be disclosed simultaneously to the management body of the authorised person, unless there are compelling reasons not to do so.]

(7)The matters to be communicated to [F18a regulator] in accordance with the regulations may include matters relating to persons other than the authorised person [F20or recognised investment exchange] concerned.

(8)CL has close links with the authorised person [F21or recognised investment exchange] 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.

(9)Subsidiary undertaking” includes all the instances mentioned in Article 1(1) and (2) of the Seventh Company Law Directive in which an entity may be a subsidiary of an undertaking.

[F22(10)In subsection (6A) “credit institution” and “investment firm” have the same meaning as in Article 4(1) of the capital requirements regulation.]

Textual Amendments

F11Words in s. 343 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(7) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications etc. (not altering text)

C4Ss. 341-346 applied (with modifications) (1.11.2009) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2)(c), 95, Sch. 5 para. 4 (with reg. 3)

Commencement Information

I2S. 343 wholly in force at 1.12.2001; s. 343 not in force at Royal Assent see s. 431(2); s. 343(5) in force at 25.2.2001 by S.I. 2001/516, art. 2(a), Sch. Pt. 1; s. 343 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

344 Duty of auditor or actuary resigning etc. to give notice.U.K.

(1)This section applies to an auditor or actuary to whom section 342 applies.

(2)He must without delay notify the [F23appropriate regulator] if he—

(a)is removed from office by an authorised person [F24or recognised investment exchange];

(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 [F23appropriate regulator]

(a)of any matter connected with his so ceasing which he thinks ought to be drawn to the [F25regulator's] attention; or

(b)that there is no such matter.

[F26(4)In this section “the appropriate regulator” means—

(a)in the case of an auditor of, or an actuary acting for, a PRA-authorised person, the PRA;

(b)in any other case, the FCA.]