(This note is not part of the Regulations)
These Regulations make amendments to the UK’s audit regime by amending the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (“the 2019 Regulations”).
Regulation 2(2)(a) grants fresh approval to the third countries previously approved by paragraph 1 of Schedule 1 to the 2019 Regulations but not as yet by the Secretary of State under section 1240A of the Companies Act 2006. This is in order to remedy a technical problem whereby section 1262 of the Companies Act 2006 provides that an “equivalent third country” is one approved by the Secretary of State under section 1240A and does not include reference to the remaining third countries referred to in paragraph 1 of Schedule 1 to the 2019 Regulations.
Regulation 2(2)(b) amends Schedule 1 to the 2019 Regulations to remove the expiry date of the current period of provisional equivalence for the United States of America in Table 1, so that full equivalence is granted indefinitely.
Regulation 2(3)(a) grants fresh approval to the third country competent authorities previously approved by paragraph 1 of Schedule 2 to the 2019 Regulations but not yet by the Secretary of State under section 1240B of the Companies Act 2006. This is in order to remedy a technical problem whereby section 1262 of the Companies Act 2006 provides that an “approved third country competent authority” is one approved by the Secretary of State under section 1240B and does not include reference to the remaining third country competent authorities referred to in paragraph 1 of Schedule 2 to the 2019 Regulations.
Regulation 2(3)(b) amends Schedule 2 to the 2019 Regulations to remove the expiry date of the current period of provisional adequacy for the competent authorities of the United States (the Public Company Accounting Oversight Board and the Securities and Exchange Commission) in Table 3, so that full adequacy is granted indefinitely.
An impact assessment has not been produced for this instrument as no, or no significant, impact on the private or voluntary sector is foreseen.