The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2020

Conditions for grant of approval

8.—(1) The Secretary of State may not grant to a third country—

(a) approval as an equivalent third country unless the Secretary of State is satisfied that condition A is met;

(b) provisional approval as an equivalent third country unless the Secretary of State is satisfied that condition B is met; or

(c) transitional approval as a transitional third country unless the Secretary of State is satisfied that condition C is met.

(2) Condition A is that the third country has an audit regulatory regime that is comparable to that of the United Kingdom.

(3) Condition B is that it is likely that—

(a) the third country has an audit regulatory regime that is comparable to that of the United Kingdom; and

(b) that comparability can reasonably be expected to have been established before the end of the period of provisional approval.

(4) Condition C is that it is likely that—

(a) the third country’s audit regulatory regime will be comparable to that of the United Kingdom before the end of the period of transitional approval; or

(b) the third country will make acceptable progress towards its audit regulatory regime being so comparable before the end of the period of transitional approval.