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The Statutory Auditors Regulations 2017

The Statutory Auditors Regulations 2017 Sch 3 para 9

Sch 3 para 9

Before regulation 25 insert— (24A) Section 463 applies to LLPs, modified so that it reads as follows— Liability for false or misleading statements in strategic report (463) (1) A member of an LLP is liable to compensate the LLP for any loss suffered by it as a result of— (a) any untrue or misleading statement in a strategic report, or (b) the omission from a strategic report of anything required to be included in it. (2) The member is so liable only if— (a) the member knew the statement to be untrue or misleading or was reckless as to whether it was untrue or misleading, or (b) the member knew the omission to be dishonest concealment of a material fact. (3) No person shall be subject to any liability to a person other than the LLP resulting from reliance, by that person or another, on information in a report to which this section applies. (4) The reference in subsection (3) to a person being subject to a liability includes a reference to another person being entitled as against him to be granted any civil remedy or to rescind or repudiate an agreement. (5) This section does not affect— (a) liability for a civil penalty, or (b) liability for a criminal offence.

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