The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Directors’ Reports) (Authorised Person) Order 2012

Made: 31st May 2012

Laid before Parliament: 11th June 2012

Coming into force: 2nd July 2012

It appears to the Secretary of State that the Conduct Committee of the Financial Reporting Council Limited —is a body having an interest in, and having satisfactory procedures directed to, monitoring compliance by issuers of transferable securities with accounting requirements imposed by Part 6 rules in relation to periodic accounts and reports produced by such issuers;is otherwise a fit and proper body to be appointed to exercise the functions mentioned at section 14(2) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 ;will exercise its functions as a prescribed body in accordance with the requirements of this Order;is a person having an interest in, and having satisfactory procedures directed to, securing compliance by companies with the requirements of the Companies Act 2006 (or, where applicable, Article 4 of the IAS Regulation ) relating to accounts and directors' reports;is a person having satisfactory procedures for receiving and investigating complaints about companies' annual accounts and directors' reports;is otherwise a fit and proper person to be authorised for the purposes of section 456 of the Companies Act 2006; andwill exercise its functions as an authorised person in accordance with the requirements of this Order.

It appears to the Secretary of State that the Conduct Committee of the Financial Reporting Council Limited —

is a body having an interest in, and having satisfactory procedures directed to, monitoring compliance by issuers of transferable securities with accounting requirements imposed by Part 6 rules in relation to periodic accounts and reports produced by such issuers;

is otherwise a fit and proper body to be appointed to exercise the functions mentioned at section 14(2) of the Companies (Audit, Investigations and Community Enterprise) Act 2004 ;

will exercise its functions as a prescribed body in accordance with the requirements of this Order;

is a person having an interest in, and having satisfactory procedures directed to, securing compliance by companies with the requirements of the Companies Act 2006 (or, where applicable, Article 4 of the IAS Regulation ) relating to accounts and directors' reports;

is a person having satisfactory procedures for receiving and investigating complaints about companies' annual accounts and directors' reports;

is otherwise a fit and proper person to be authorised for the purposes of section 456 of the Companies Act 2006; and

will exercise its functions as an authorised person in accordance with the requirements of this Order.

The Secretary of State makes the following Order in exercise of the powers conferred by sections 14(1), (5) and (8) and 15E of the Companies (Audit, Investigations and Community Enterprise) Act 2004 and by sections 457(1), (2), (5) and (6), 462 and 1292(1)(b) and (c) of the Companies Act 2006.

Citation, coming into force and interpretation

1

• (1) This Order may be cited as the Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Directors' Reports) (Authorised Person) Order 2012.

• (2) This Order comes into force on 2nd July 2012.

• (3) In this Order—

• “the 2004 Act” means the Companies (Audit, Investigation and Community Enterprise) Act 2004;

• “the 2005 Order” means the Supervision of Accounts and Reports (Prescribed Body) Order 2005 ;

• “the 2006 Act” means the Companies Act 2006;

• “the 2007 Order” means the Supervision of Accounts and Reports (Prescribed Body) Order 2007 ;

• “the 2008 Order” means the Companies (Defective Accounts and Directors' Reports) (Authorised Person) and Supervision of Accounts and Reports (Prescribed Body) Order 2008 ;

• “the 2008 Regulations” means the Limited Liability Partnerships (Accounts and Audits)(Application of Companies Act 2006) Regulations 2008 ;

• “coming into force” means the coming into force of this Order;

• “the Conduct Committee” means the body of that name established under the articles of association of The Financial Reporting Council Limited;

• “DGTR sourcebook” means the Disclosure Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority under the Financial Services and Markets Act 2000 , as it has effect on IP completion day;

• “LLPs” means limited liability partnerships;

• “UK regulated market” has the meaning given in Article 2.1.13A of Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 and amending Regulation (EU) No. 648/2012.

• ...

• ...

Appointment in relation to issuers

2

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Appointment in relation to accounts

3

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Authorisation

4

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Decision recording etc requirements

5

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Amendments to categories of permitted disclosure

6

• (1) After section 15D(4)(a) of the 2004 Act insert—

(aa) for the purpose of facilitating the carrying out of inspections under any of the following— (i) paragraph 23 of Schedule 10 to the Companies Act 2006 (arrangements for independent monitoring of audits of listed companies and other major bodies); (ii) paragraph 23A of that Schedule to that Act (arrangements for independent monitoring of third country audits); and (iii) paragraph 1 of Schedule 12 to that Act (arrangements for independent monitoring of audits of UK-traded non-EEA companies);

• (2) After section 461(4)(a) of the 2006 Act insert—

(aa) for the purpose of facilitating the carrying out of inspections under paragraph 23 of Schedule 10 (arrangements for independent monitoring of audits of listed companies and other major bodies);

Application, revocations and transitional provisions

7

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Consequential amendments

8

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Signed

Norman Lamb — Parliamentary Under Secretary of State for Employment Relations, Consumer and Postal Affairs — 2012-05-31

Explanatory note

(This note is not part of the Order)

Footnotes

[^f00001]: A company registered in England and Wales with number 02486368.

[^f00002]: Defined in section 103(1) of the Financial Services and Markets Act 2000 (c.8); section 103 was substituted by S.I. 2005/1433.

[^f00003]: 2004 c.27. Section 14(2) was amended by section 1272 of, and paragraphs 13 and 14 of Schedule 15 to the Companies Act 2006 (c.46).

[^f00004]: 2006 c.46.

[^f00005]: Regulation (EC) No. 1606/2002 of the European Parliament and the Council of 19.7.2002 on the application of international accounting standards (OJ L 243, 11.9.2002, p.1).

[^f00006]: Section 14(3) was amended by section 1272 of, and paragraphs 13 and 14 of Schedule 15 to, the Companies Act 2006. Section 15E was inserted by article 3(1) and paragraph 232(2) of Schedule 1 to S.I. 2008/948.

[^f00007]: S.I. 2005/715, revoked with savings by S.I. 2007/2583.

[^f00008]: S.I. 2007/2583, revoked with savings by S.I. 2008/623.

[^f00009]: S.I. 2008/623.

[^f00010]: S.I. 2008/1911, amended by S.I. 2009/1804; there are other amending instruments but none is relevant.

[^f00011]: OJ L 145, 30.4.2004, p.1.

[^f00012]: OJ L 390, 31.12.2004, p.38.

[^f00013]: FSA 2006/70. The Order is available on the Financial Services Authority’s website at www.fsa.gov.uk/Pages/handbook.

[^f00014]: 2000 c.8. Section 73A was inserted by S.I. 2005/381, Schedule 1, paragraph 2, and amended by S.I. 2005/1433, Schedule 1, paragraph 1, and by paragraphs 1 and 3 of Part 1 of Schedule 15 to the Companies Act 2006. Sections 89A to 89E were inserted by section 1266(1) of the Companies Act 2006. Section 101 was amended by S.I. 2005/381, Schedule 1, paragraph 10.

Editorial notes

[^c21278601]: A company registered in England and Wales with number 02486368.

[^c21278611]: Defined in section 103(1) of the Financial Services and Markets Act 2000 (c.8); section 103 was substituted by S.I. 2005/1433.

[^c21278621]: 2004 c.27. Section 14(2) was amended by section 1272 of, and paragraphs 13 and 14 of Schedule 15 to the Companies Act 2006 (c.46).

[^c21278631]: 2006 c.46.

[^c21278641]: Regulation (EC) No. 1606/2002 of the European Parliament and the Council of 19.7.2002 on the application of international accounting standards (OJ L 243, 11.9.2002, p.1).

[^c21278651]: Section 14(3) was amended by section 1272 of, and paragraphs 13 and 14 of Schedule 15 to, the Companies Act 2006. Section 15E was inserted by article 3(1) and paragraph 232(2) of Schedule 1 to S.I. 2008/948.

[^c21278661]: S.I. 2005/715, revoked with savings by S.I. 2007/2583.

[^c21278671]: S.I. 2007/2583, revoked with savings by S.I. 2008/623.

[^c21278681]: S.I. 2008/623.

[^c21278691]: S.I. 2008/1911, amended by S.I. 2009/1804; there are other amending instruments but none is relevant.

[^key-d5bc8ec76c0d56891f3b39dce58f61e4]: Words in art. 1(3) inserted (31.12.2020) by The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), reg. 1(2)(c), Sch. 3 para. 31(b) (as amended by The Companies and Statutory Auditors etc. (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/523), regs. 1(2), 12(a)); 2020 c. 1, Sch. 5 para. 1(1)

[^key-f7281ae8aced9a4769f18cece14b72cd]: Words in art. 1(3) omitted (31.12.2020) by virtue of The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), reg. 1(2)(c), Sch. 3 para. 31(a); 2020 c. 1, Sch. 5 para. 1(1)

[^key-4a018f40e3e59b4fc15c1589fefab709]: Words in art. 1(3) inserted (31.12.2020) by The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/145), reg. 1(2)(c), Sch. 3 para. 31(c); 2020 c. 1, Sch. 5 para. 1(1)

[^key-e9af95ccc4b82c6ffea92672e5be0e32]: Arts. 2-5 omitted (6.5.2021) by virtue of The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021 (S.I. 2021/465), arts. 1(2), 7 (with art. 9)

[^key-c4306d83e024e536f2080797117f7f72]: Art. 7 omitted (6.5.2021) by virtue of The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021 (S.I. 2021/465), arts. 1(2), 7 (with art. 9)

[^key-347ee096b361190eed96f5833b3e0a8a]: Art. 8 omitted (6.5.2021) by virtue of The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021 (S.I. 2021/465), arts. 1(2), 7 (with art. 9)