Sch 12 para 2
(1) The arrangements referred to in section 1242(1)(b) are appropriate arrangements— (a) for the carrying out of investigations into matters arising in connection with the performance of functions related to the audit of UK-traded third country companies by the registered third country auditor, (b) where it appears to be desirable following the conclusion of such investigations— (i) for the holding, subject to sub-paragraph (1A), of disciplinary hearings relating to the registered third country auditor, (ii) unless the interests of justice otherwise require, for any such hearings to be held in public, and (iii) for decisions to be made as to whether (and, if so, what) disciplinary action should be taken against the registered third country auditor, and (c) for ensuring that the carrying out of those investigations, the holding of those hearings and the making of those decisions are done independently of the registered third country auditor. (1A) The arrangements may provide that decisions to take disciplinary action, and decisions as to what that action should be, may be made in respect of a registered third country auditor without the holding of a disciplinary hearing relating to that registered third country auditor where the registered third country auditor agrees in writing that such a hearing need not be held. (2) In this paragraph— “ disciplinary action ” includes the imposition of a fine; and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .