Part XXII

Auditors and Actuaries

Appointment

Appointment.
340
1
The appropriate regulator may make rules requiring an authorised person, or an authorised person falling within a specified class—
a
to appoint an auditor, or
b
to appoint an actuary,
if he is not already under an obligation to do so imposed by another enactment.
2
The appropriate regulator may make rules requiring an authorised person, or an authorised person falling within a specified class—
a
to produce periodic financial reports; and
b
to have them reported on by an auditor or an actuary.
3A
The PRA—
a
must make rules imposing on auditors of PRA-authorised persons such duties as may be specified in relation to co-operation with the PRA in connection with the supervision by the PRA of PRA-authorised persons, and
b
may make rules—
i
imposing such other duties on auditors of PRA-authorised persons as may be specified, and
ii
imposing such duties on actuaries acting for PRA-authorised persons as may be specified.
3B
The FCA may make rules imposing on auditors of, or actuaries acting for, authorised persons such duties as may be specified.
4
Rules under subsection (1) may make provision—
a
specifying the manner in which and time within which an auditor or actuary is to be appointed;
b
requiring the regulator making the rules to be notified of an appointment;
c
enabling the regulator making the rules to make an appointment if no appointment has been made or notified;
d
as to remuneration;
e
as to the term of office, removal and resignation of an auditor or actuary.
5
An auditor or actuary appointed as a result of rules under subsection (1), or on whom duties are imposed by rules under subsection (3A) or (3B)—
a
must act in accordance with such provision as may be made by rules; and
b
is to have such powers in connection with the discharge of his functions as may be provided by rules.
5A
In subsections (1) and (2) “
the appropriate regulator
” means—
a
in the case of a PRA-authorised person, the PRA;
b
in any other case, the FCA.
6
In subsections (1) to (3B) “auditor” or “actuary” means an auditor, or actuary, who satisfies such requirements as to qualifications, experience and other matters (if any) as may be specified.
7
“Specified” means specified in rules.
8
The powers conferred by this section enable only the making of such rules as appear to the regulator making them to be necessary or expedient—
a
in the case of the FCA, for the purpose of advancing one or more of its operational objectives, or
b
in the case of the PRA, for the purpose of advancing any of its objectives.
Pt. 22 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(b), 62, Sch. 3 para. 5 (with reg. 3) (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 196(5)(e) and (18.9.2023) by S.I. 2023/790, regs. 1(2)(a), 2(3)(b))
S. 340(3A)(3B) substituted for s. 340(3) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(4) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 340(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(5) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
S. 340(5A) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(7) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 340(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(6) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
S. 340(8) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(9) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 340(2) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Word in s. 340(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(8) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in s. 340(1) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 3(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
S. 340 applied (with modifications) (18.9.2023) by S.I. 2017/752, Sch. 6 para. 7(1) (as inserted by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(b)(ii))