Companies Act 2006

Changes over time for: Paragraph 6

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Changes and effects yet to be applied to Schedule 10 Paragraph 6:

Sch. 10 para. 6(1)(c) substituted by S.I. 2019/177 reg. 28(a) (This amendment not applied to legislation.gov.uk. Reg. 28(a) substituted immediately before IP completion day by S.I. 2020/523, regs. 1(2), 14(e)(ii))

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Act amendment to earlier affecting provision S.I. 1989/638, Sch. 4 by S.I. 2024/410 Sch. 2 para. 1
Act amendment to earlier affecting provision S.I. 2008/373 reg. 11(1) by S.I. 2013/1971 reg. 9(a) (This amendment not applied to legislation.gov.uk. Amending Regulations revoked (1.10.2013) without ever being in force by S.I. 2013/2224, reg. 2)
Act amendment to earlier affecting provision S.I. 2008/373 reg. 3(4) by S.I. 2013/1971 reg. 4 (This amendment not applied to legislation.gov.uk. Amending Regulations revoked (1.10.2013) without ever being in force by S.I. 2013/2224, reg. 2)

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

s. 479A(2)(c)(zi) inserted by S.I. 2019/177 reg. 4(b)(i) (This amendment not applied to legislation.gov.uk. Reg. 4 substituted by regs. 4, 4A immediately before IP completion day by S.I. 2019/1392, regs. 1(2), 4)
s. 479B(a)(iii) amendment to earlier affecting provision S.I.2008/1991 reg.34 by S.R. 2024/78 reg. 31(4)
s. 479B(a)(iii) amendment to earlier affecting provision S.I.2008/1991 reg.34A by S.R. 2024/78 reg. 31(5)
s. 1087A-1807C applied by S.I. 2009/2436, Sch. 1 para. 20(1)(ca) (as substituted) by S.I. 2024/410 Sch. 2 para. 5(d)(ii)
Sch. 10 para. 6(2D) inserted by S.I. 2019/177 reg. 28(e) (This amendment not applied to legislation.gov.uk. Reg. 28(e) omitted immediately before IP completion day by virtue of S.I. 2020/523, regs. 1(2), 14(e)(iv))
Sch. 10 para. 7(2A) inserted by S.I. 2019/177 reg. 29(b) (This amendment not applied to legislation.gov.uk. Reg. 29 substituted immediately before IP completion day by S.I. 2020/523, regs. 1(2), 14(f))

This section has no associated Explanatory Notes

6(1)The body must have rules to the effect that a person is not eligible for appointment as a statutory auditor unless—U.K.

(a)in the case of an individual [F1other than [F2a third country auditor]], he holds an appropriate qualification,

[F3(aa) in the case of an individual who is [F4a third country auditor]—

(i)he holds an appropriate qualification,

(ii) he has been authorised on or before 5 April 2008 to practise the profession of company auditor pursuant to the European Communities (Recognition of Professional Qualifications) (First General System) Regulations 2005 ( S.I. 2005/18) and has fulfilled any requirements imposed pursuant to regulation 6 of those Regulations, or

[F5(iii)he meets the requirements of sub-paragraph (1A).]]

(b)in the case of a firm F6...—

(i)each individual responsible for statutory audit work on behalf of the firm is eligible for appointment as a statutory auditor, and

(ii)the firm is controlled by qualified persons (see paragraph 7 below).

F7(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(1A)The requirements of this sub-paragraph are that—

(a)the individual holds a professional qualification which covers all the subjects that are covered by a recognised professional qualification and that are subjects of which knowledge is essential for the pursuit of the profession of statutory auditor, F9...

(b) the individual is an EEA auditor who—

(i)on or before IP completion day, holds a professional qualification which does not cover all those subjects,

(ii)on or before IP completion day, has been approved by the body or is in the process of seeking approval from the body, and

(iii)has met whichever of the requirements of sub-paragraph (1B) is specified in the body's rules [F10, or

(c)the individual is a specified state auditor who—

(i)holds professional qualifications obtained in a specified state that are comparable to an appropriate qualification, and

(ii)has met a requirement to take an aptitude test or to complete an adaptation period, or to undertake both, imposed on the individual by the body in accordance with Part 2 of the Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023, if such a requirement is so imposed.]]

[F11(1B) For the purposes of sub-paragraph (1A)(b)(iii), the body's rules must specify one of the following requirements—

(a)a requirement to pass an aptitude test in accordance with sub-paragraph (2),

(b)a requirement to complete an adaptation period in accordance with sub-paragraphs (2B) and (2C), or

(c)a requirement either to pass an aptitude test in accordance with sub-paragraph (2) or to complete an adaptation period in accordance with sub-paragraphs (2B) and (2C), according to the choice of the individual.]

[F12(2)The aptitude test—

(a)must test the person's knowledge of subjects—

(i)that are covered by a recognised professional qualification,

(ii)that are not covered by the professional qualification already held by the person, and

(iii)the knowledge of which is essential for the pursuit of the profession of statutory auditor;

(b)may test the person's knowledge of rules of professional conduct;

(c)must not test the person's knowledge of any other matters.

F13(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F14(2B)An adaptation period is a period, not exceeding three years, in which the individual (“the applicant”) pursues the profession of statutory auditor under the supervision of an individual who holds an appropriate qualification, subject to an assessment (“the ability assessment”) of the applicant’s ability to pursue the profession of statutory auditor in the United Kingdom.

(2C)Where the body’s rules specify [F15a requirement that may or must be met by completing an adaptation period]—

(a) the body must have rules governing the adaptation period and the ability assessment, having regard to the circumstances of each applicant and, in particular, to the fact that each applicant is a qualified professional in [F16an EEA State],

(b)the applicant may be required to undergo further training during the adaptation period,

(c)the applicant’s performance during the adaptation period must be assessed by the body, and

(d)the body must determine the applicant’s professional status during the adaptation period.]

(3)A firm which has ceased to comply with the conditions mentioned in sub-paragraph (1)(b) may be permitted to remain eligible for appointment as a statutory auditor for a period of not more than three months.]

Textual Amendments

F1Words in Sch. 10 para. 6(1)(a) inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 17(2)

F2Words in Sch. 10 para. 6(1)(a) substituted (31.12.2020) by S.I. 2019/177, regs. 2, 28(za) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F3Sch. 10 para. 6(1)(aa) inserted (6.4.2008) by The Statutory Auditors and Third Country Auditors Regulations 2007 (S.I. 2007/3494), reg. 17(3)

F4Words in Sch. 10 para. 6(1)(a) substituted (31.12.2020) by S.I. 2019/177, regs. 2, 28(za) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F5Sch. 10 para. 6(1)(aa)(iii) substituted (17.6.2016) by The Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), reg. 1(1)(a), Sch. 3 para. 57(2)

F6Words in Sch. 10 para. 6(1)(b) omitted (31.12.2020) by virtue of S.I. 2019/177, regs. 2, 28(zc) (as inserted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)

F7Sch. 10 para. 6(1)(c) omitted (31.12.2020) by virtue of S.I. 2019/177, regs. 2, 28(a) (as substituted by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 14(e)(ii)); 2020 c. 1, Sch. 5 para. 1(1)

F8Sch. 10 para. 6(1A) substituted (31.12.2020) by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177), regs. 2, 28(b) (as amended by S.I. 2019/1392, regs. 1(2), 6 (as amended by S.I. 2020/523, regs. 1(2), 27)); 2020 c. 1, Sch. 5 para. 1(1)