EXPLANATORY NOTE
(This note is not part of the Order)
This Order appoints and authorises the Financial Reporting Council Limited (“the FRC”) for certain purposes under the Companies (Audit, Investigations and Community Enterprise) Act 2004 (“the 2004 Act”) and the Companies Act 2006 (“the 2006 Act”). It also applies an exemption of liability to the FRC under s18A of the 2004 Act. The Order applies to the whole of the United Kingdom.
Article 2 appoints the FRC to exercise the functions described in section 14(2) of the 2004 Act. These functions include keeping certain periodic accounts and reports under review and informing the Financial Conduct Authority of any conclusions the FRC reaches as regards those accounts and reports.
Article 3 appoints the FRC to exercise the functions described in section 14(2) of the 2004 Act to periodic accounts and reports that fall within the definitions of accounts within the Disclosure Guidance and Transparency Rules Sourcebook.
Article 4 authorises the FRC for the purposes of section 456 of the 2006 Act i.e. authorises the FRC to apply to the court for a declaration in respect of defective accounts or reports.
Article 5 imposes a record keeping requirement onto the FRC in relation to the functions conferred by this Order.
Articles 6 and 7 make consequential amendments to the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and to the Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Directors’ Reports) (Authorised Person) Order 2012.
Article 8 amends the Companies (Bodies Concerned with Auditing Standards etc) (Exemption from Liability) Regulations 2016 to apply the exemption from liability contained in section 18A(3) and (4) of the 2004 Act to the FRC.
Article 9 provides application and transitional provisions.
These Regulations refer to a sourcebook made by the Financial Conduct Authority under the Financial Services and Markets Act 2000. Sourcebooks made by the Financial Conduct Authority are available on https://www.handbook.fca.org.uk/handbook and copies of the rules referred to can be obtained from the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN, where they are also available for inspection.
An impact assessment has not been produced for this instrument, as no, or no significant, impact on the private, voluntary or public sector is foreseen.