Moved by
Baroness Blake of Leeds
34: After Clause 4, insert the following new Clause—
“Recognition of foreign auditors and foreign audit qualifications
(1) Section 1221 of the Companies Act 2006 (approval of overseas qualifications) is amended as follows.
(2) In subsection (1A)(a), for “covers all” substitute “sufficiently covers”.
(3) In subsection (91A)(b), for “covers all” substitute “sufficiently covers”.
(4) In subsection (1B), for “is” substitute “may be”.
(5) In subsection (3), for “equivalent” substitute “sufficiently comparable”.
(6) In subsection (5), after “qualifications” insert “or experience”.
(7) In subsection (7A)(a)(ii), after “not” insert “sufficiently”.”
Member’s explanatory statement
This new Clause amends the Companies Act 2006 such that the Financial Reporting Council, the statutory regulator for audit, would gain greater discretion over which foreign auditors and foreign audit qualifications could be accepted in the UK.