The Auditors (Financial Services Act 1986) Rules 1994

• Citation: S.I. 1994/526
• Sections: 3

Section 1 Citation and commencement

These Rules may be cited as the Auditors (Financial Services Act 1986) Rules 1994 and shall come into force on 1st May 1994.

Section 2 Interpretation

In these Rules—

“ the Act ” means the Financial Services Act 1986;

“auditor” means an auditor of an authorised person;

“disciplinary action” means action of a kind mentioned in section 47A(4)(a) to (d) of the Act , any similar action which a recognised self-regulating organisation or recognised professional body has power to take and, in the case of a recognised self-regulating organisation or recognised professional body, any power to impose a financial penalty;

“matter” means any matter to which section 109 of the Act applies;

“powers of intervention” means the powers conferred by Chapter VI of Part I of the Act and any similar powers exercisable by a recognised self-regulating organisation or a recognised professional body; and

“the relevant regulator” means the person, organisation or body to which an auditor must communicate a matter by virtue of section 109 of the Act.

Section 3 Circumstances in which auditor is to communicate

(1) Matters are to be communicated to the relevant regulator by an auditor in the circumstances specified in paragraph (2) below.

(2) The circumstances referred to in paragraph (1) above are ones in which the auditor has reasonable cause to believe that the matter is or is likely to be of material significance for determining either—

(a) whether a person is a fit and proper person to carry on investment business; or

(b) whether disciplinary action should be taken, or powers of intervention exercised, in order to protect investors from a significant risk of loss.