The Bank Accounts Directive (Miscellaneous Banks) Regulations 2008

JurisdictionUK Non-devolved
CitationSI 2008/567

2008No. 567

BANKS AND BANKING

The Bank Accounts Directive (Miscellaneous Banks) Regulations 2008

26thFebruary2008

5thMarch2008

6thApril2008

CONTENTS

PART 1

INTRODUCTION

1. Citation, commencement and application

2. Interpretation

3. Meaning of "qualifying bank"

PART 2

ACCOUNTS

4. Preparation of accounts

5. Publication of accounts

6. Penalties for non-compliance (accounts)

PART 3

AUDITORS

7. Appointment of auditor

8. Functions of auditor

9. Signature of auditor's report

10. Removal of auditor on improper grounds

11. Duty of auditor to notify appropriate audit authority

12. Duty of qualifying bank to notify appropriate audit authority

13. Penalties for non-compliance (notification of appropriate audit authority)

PART 4

FINAL PROVISIONS

14. Consequential amendment

15. Revocation and transitional provision

SCHEDULE-

MODIFICATIONS AND ADAPTATIONS OF THE COMPANIES ACT 2006 AND THE COMPANIES ACCOUNTS REGULATIONS

The Secretary of State is a Minister designated 1 for the purposes of section 2(2) of the European Communities Act 1972 2 in relation to the creation, operation, regulation or dissolution of companies and other forms of business organisation, and in relation to auditors and the audit of accounts.

The Secretary of State makes the following Regulations in exercise of the powers conferred by section 2(2) of that Act.

PART 1

INTRODUCTION

Citation, commencement and application

1.-

(1) These Regulations may be cited as the Bank Accounts Directive (Miscellaneous Banks) Regulations 2008.

(2) These Regulations come into force on 6th April 2008 and apply in relation to-

(a) qualifying banks' financial years beginning on or after that date, and(b) auditors appointed in respect of those financial years.

Interpretation

2.-

(1) In these Regulations-

"the Companies Accounts Regulations" means the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 3;

"accounts" means the annual accounts, the directors' report and the auditor's report required by regulation 4(1);

"the appropriate audit authority" means-

(a) the Secretary of State, or(b) if the Secretary of State has delegated functions under section 1252 of the Companies Act 2006 4 to a body whose functions include receiving the equivalent notice under section 522 or 523 of that Act, that body;

"the Authority" means the Financial Services Authority 5;

"director" includes, in the case of a body which is not a company, any corresponding officer of that body;

"enactment" includes-

(a) an enactment contained in subordinate legislation, other than these Regulations,(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,(c) an enactment contained in, or in an instrument made under, Northern Ireland legislation, and(d) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;

"financial year", in relation to a qualifying bank, means any period in respect of which a profit and loss account of that bank is required to be made up by or in accordance with its constitution or by any enactment (whether that period is a year or not) or, failing any such requirement, each period of 12 months beginning with 1st April,

"qualifying bank" shall be construed in accordance with regulation 3.

(2) Except as otherwise provided in these Regulations, words and expressions used in the Companies Act 2006 have the same meaning in these Regulations as they have in that Act.

Meaning of "qualifying bank"

3.-

(1) Any body of persons, whether incorporated or unincorporated, which-

(a) is incorporated or formed by or established under any public general Act of Parliament passed before the year 1837,(b) has a principal place of business within the United Kingdom,(c) is an authorised deposit taker, and(d) is not required by any enactment to prepare accounts under Part 15 of the Companies Act 2006,

is a qualifying bank for the purposes of these Regulations.

(2) In paragraph (1), "authorised deposit taker" means a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, but excludes-

(a) a building society, within the meaning of section 119 of the Building Societies Act 1986 6,(b) a credit union, within the meaning of the Credit Unions Act 1979 7 or the Credit Unions (Northern Ireland) Order 1985 8,(c) a specially authorised friendly society, within the meaning of section 7(1)(f) of the Friendly Societies Act 1974 9, and(d) a person who has permission to accept deposits only in the course of effecting or carrying out contracts of insurance in accordance with that permission.

(3) References in paragraph (2) to-

(a) accepting deposits, and(b) effecting and carrying out contracts of insurance,

must be read with section 22 of the Financial Services and Markets Act 2000, the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 10, and Schedule 2 to that Act.

PART 2

ACCOUNTS

Preparation of accounts

4.-

(1) The directors of a qualifying bank must in respect of each financial year of the bank-

(a) prepare such annual accounts and directors' report, and(b) cause to be prepared such auditor's report,

as would be required under Part 15 (accounts and reports) and Chapter 1 of Part 16 (requirement for audited accounts) of the Companies Act 2006, and under the Companies Accounts Regulations if the bank were a company which is a banking company or the parent company of a banking group, subject to the provisions of the Schedule to these Regulations.

(2) Regulations 5 and 6 of the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008 11 apply in relation to the accounts required by this regulation as they apply in relation to the annual accounts of a company or group which is not a small or medium-sized company or group.

(3) The accounts required by paragraph (1) must be prepared within a period of 6 months beginning immediately after the end of the qualifying bank's financial year.

Publication of accounts

5.-

(1) A qualifying bank must make available the latest accounts prepared under regulation 4 for inspection by any person, without charge and during business hours, at the bank's principal place of business within the United Kingdom.

(2) The bank must supply to any person upon request a copy of those accounts (or such part of those accounts as may be requested) at a price not exceeding the administrative cost of making the copy.

(3) Paragraph (2) applies whether the request for a copy is made orally during inspection under paragraph (1), by post or otherwise.

Penalties for non-compliance (accounts)

6.-

(1) If the directors of a qualifying bank fail to prepare, or (in the case of the auditor's report) fail to cause to be prepared, the accounts required by...

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