C4C1C2C3C5Part 42Statutory Auditors
Pt. 42 modified (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 43
Pt. 42: functions transferred in part (6.4.2008 in accordance with art. 1 of the amending S.I.) by The Statutory Auditors (Delegation of Functions etc) Order 2008 (S.I. 2008/496), art. 4 (which amending S.I. was revoked (2.7.2012) by S.I. 2012/1741, art. 6)
Pt. 42 applied (with modifications) (15.8.2008) by The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 (S.I. 2008/1950), reg. 6(5)
Pt. 42: functions transferred in part (2.7.2012) by The Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 (S.I. 2012/1741), arts. 1(2), 7, 8, 9 (with art. 16)
Chapter 6Supplementary and general
F1Transfer of papers to third countries
Ss. 1253D-1253F and cross-heading inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 15(1) (with reg. 15(2) (as amended by S.I. 2008/499), reg. 2(4)))
F21253EWorking arrangements for transfer of papers
1
The Secretary of State may enter into arrangements with a third country competent authority relating to the transfer of F8audit working papers and investigation reports—
a
from the third country competent authority or a third country auditor regulated by that authority to the Secretary of State, and
b
from the Secretary of State or a statutory auditor to the third country competent authority.
2
The arrangements must provide that a request by the Secretary of State or the third country competent authority for a transfer mentioned in subsection (1) must be accompanied by a statement explaining the reasons for the request.
3
The arrangements must—
a
provide that the Secretary of State may not use F8audit working papers and investigation reports obtained from the third country competent authority or a third country auditor regulated by that authority except in connection with one or more of the functions mentioned in subsection (4), and
b
include comparable provision in relation to F8audit working papers and investigation reports obtained by the third country competent authority from the Secretary of State or a statutory auditor.
4
Those functions are—
a
quality assurance functions which meet requirements equivalent to those of F6regulation 9 of the Statutory Auditors and Third Country Auditors Regulations 2016;
b
investigation or disciplinary functions which meet requirements equivalent to those of F10regulations 5 to 8 and 10 of the Statutory Auditors and Third Country Auditors Regulations 2016;
c
public oversight functions which meet requirements equivalent to those of F5regulation 3 of the Statutory Auditors and Third Country Auditors Regulations 2016.
5
The arrangements must—
a
provide that the Secretary of State, a person exercising the functions of the Secretary of State and persons employed or formerly employed in discharging those functions must be subject to obligations of confidentiality as to personal data, professional secrets and sensitive commercial information contained in F8audit working papers and investigation reports transferred to the Secretary of State, F11...
b
c
ensure that the protection of the commercial interests of any audited person, including its industrial and intellectual property, is not undermined.
6
The arrangements must—
a
provide that the Secretary of State may refuse, or direct a statutory auditor to refuse, a request from the third country competent authority for a transfer of F8audit working papers and investigation reports in a case mentioned in subsection (7)(a) or (b), and
b
provide that the third country competent authority has comparable rights in relation to a request from the Secretary of State.
7
Those cases are—
a
where the transfer of the papers would adversely affect the sovereignty, security or public order F4...of the United Kingdom;
b
where legal proceedings have been brought in the United Kingdom (whether continuing or not) in relation to the persons and matters to which the request relates.
F77A
The arrangements must—
a
provide that the Secretary of State may only disclose confidential information received from the third country competent authority—
i
with the agreement of that authority or for purposes for which that authority has given its agreement,
ii
where disclosure is required by law, or
iii
where disclosure is necessary in connection with legal proceedings, and
b
provide that the third country competent authority may only disclose confidential information received from the Secretary of State—
i
with the Secretary of State’s agreement or for purposes for which the Secretary of State has given agreement,
ii
where disclosure is required by law, or
iii
where disclosure is necessary in connection with legal proceedings.
F98
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F99
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Pt. 42 applied (with modifications) (4.4.2014 for specified purposes, 16.12.2014 in so far as not already in force) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 5 paras. 1-27 (with Sch. 13 para. 11); S.I. 2014/900, art. 2(j); S.I. 2014/3319, art. 2(e) (as amended: (31.12.2020) by S.I. 2019/177, regs. 2, 57; 2020 c. 1, Sch. 5 para. 1(1) and S.I. 2019/504, regs. 1(2), 3-6; 2020 c. 1, Sch. 5 para. 1(1); and (1.7.2022) by 2022 c. 31, s. 186(6), Sch. 4 para. 216, Sch. 7 para. 28; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30); and (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 82)