10(1)Section 107 of the Financial Services Act 1986 (appointment of auditors) is amended as follows.
(2)For subsection (1) (power to make rules) substitute—
“(1)The Secretary of State may make rules requiring—
(a)a person authorised to carry on investment business by virtue of section 25 or 31 above, or
(b)a member of a recognised self-regulating organisation carrying on investment business in the carrying on of which he is subject to the rules of the organisation,
and who, apart from the rules, is not required by or under any enactment to appoint an auditor, to appoint as an auditor a person satisfying such conditions as to qualifications and otherwise as may be specified in or imposed under the rules.”.
(3)After subsection (3) add—
“(4)In its application to members of recognised self-regulating organisations, this section has effect subject to section 107A below.”.