Auditors Appointment of Auditors

Application provision

1.1 This Part applies to:

  1. (1) every firm, except for an incoming firm that does not have a top-up permission; and
  2. (2) the external auditor of such a firm (if appointed under 2 or appointed under or as a result of a statutory provision other than in FSMA).

2.1

19/06/2014

A firm must:

  1. (1) appoint an auditor;
  2. (2) when it becomes aware that a vacancy in the office of auditor will arise or has arisen:
    1. (a) notify the PRA; and
    2. (b) give reasons for the vacancy,
  3.       without delay, using the form referred to in Notifications 10.3;
  4. (3) appoint an auditor to fill any vacancy in the office of auditor;
  5. (4) ensure that the replacement auditor can take up office at the time the vacancy arises or as soon as reasonably practicable after that; and
  6. (5) when a new auditor is appointed:
    1. (a) notify the PRA of that appointment; and
    2. (b) advise the PRA of the name and business address of the auditor appointed and the date from which the appointment has effect,
  7.       using the form referred to in Notifications 10.3.

2.2

19/06/2014

Where a firm that is not under an obligation to appoint an auditor imposed by an enactment other than FSMA fails to appoint an auditor within 28 days of a vacancy arising, the PRA may appoint an auditor for that firm on the following terms:

  1. (1) the auditor to be remunerated by the firm on the basis agreed between the auditor and firm or, in the absence of agreement, on a reasonable basis; and
  2. (2) the auditor to hold office until he resigns or the firm appoints another auditor.

2.3

19/06/2014

A firm must comply with and is bound by the terms on which an auditor has been appointed by the PRA.