Company Law Reform Bill [HL]

Clause 826 sets out the framework for the supervision arrangements to be carried out by the independent supervisor. The arrangements mirror, to a large extent, what happens with supervision of company auditors in general. The clause is drafted on the basis of a two-tier regulatory framework: one of monitoring, and one of oversight. The independent supervisor will contract with a third party to monitor the Auditor General’s statutory audits, with the independent supervisor overseeing that work. We envisage that the professional bodies can be involved in these monitoring arrangements, as they are for other auditors, but that will be subject to consultation. We consider that this arrangement is more effective than having a single tier of supervision without independent oversight. I am very conscious that that speaking note does not address directly why one regime cannot cover both. I am sure we will reflect on what the noble Baroness said. I am sure that she will read the Official Report on this. That is the Government’s position on the matter.