[F123A[F2(1)The arrangements referred to in paragraph 13(1)(ba)(i) are appropriate arrangements—U.K.
(a)for enabling the performance by members of the supervisory body of third country audit functions to be monitored by means of inspections carried out under the arrangements;
(b)for enabling the body performing the inspections to determine sanctions (including those mentioned in paragraph 12(3)(a)) against members of the supervisory body where, pursuant to an inspection, it concludes that the members have not complied with the supervisory body’s rules in so far as they are relevant to the performance of third country audit functions; and
(c)for ensuring that the carrying out of such inspections and the determination of such sanctions are done independently of the supervisory body.]
(2)Those arrangements must provide that the body performing the inspections—
(a)may decide that an inspection referred to in sub-paragraph (1) is not required, or that part of an inspection is not required, in relation to a member, and
(b)may direct that the arrangements referred to in sub-paragraph (3) apply in relation to the member or apply to such extent as may be specified in the direction.
(3)The supervisory body must have adequate arrangements for enabling the performance by its members of third country audit functions to be monitored by means of inspections for cases where a direction is given under sub-paragraph (2)(b).
(4) In this paragraph “ third country audit function ” means any function related to the audit of a UK-traded non-EEA company. ]
Textual Amendments
F1Sch. 10 para. 23A inserted (1.10.2011 with application in accordance with reg. 1(6)) by The Statutory Auditors and Third Country Auditors (Amendment) Regulations 2011 (S.I. 2011/1856), reg. 5(4)
F2Sch. 10 para. 23A(1) substituted (1.10.2013) by The Statutory Auditors and Third Country Auditors Regulations 2013 (S.I. 2013/1672), regs. 3, 16(3)