The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021
| Jurisdiction | UK Non-devolved |
| Citation | SI 2021/465 |
| Year | 2021 |
2021 No. 465
Companies
The Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021
Made 13th April 2021
Laid before Parliament 15th April 2021
Coming into force 6th May 2021
It appears to the Secretary of State that the Financial Reporting Council Limited1—
(a) is a body having an interest in, and having satisfactory procedures directed to, monitoring compliance by issuers of transferable securities with accounting requirements imposed by Part 6 rules2in relation to periodic accounts and reports produced by such issuers;
(b) is otherwise a fit and proper body to be appointed to exercise the functions mentioned at section 14(2) of the Companies (Audit, Investigations and Community Enterprise) Act 20043;
(c) will exercise its functions as a prescribed body in accordance with the requirements of this Order;
(d) is a person having an interest in, and having satisfactory procedures directed to, securing compliance by companies with the requirements of the Companies Act 20064relating to accounts and reports;
(e) is a person having satisfactory procedures for receiving and investigating complaints about companies’ annual accounts and reports;
(f) is otherwise a fit and proper person to be authorised for the purposes of section 456(1)5of the Companies Act 2006; and
(g) will exercise its functions as an authorised person in accordance with the requirements of this Order.
The Secretary of State makes the following Order in exercise of the powers conferred by sections 14(1), (5), (8) and (10) and 18A(1) and (3)6of the Companies (Audit, Investigations and Community Enterprise) Act 2004 and sections 457(1), (2), (5) and (6)7and 1292(1)(b) and (c) of the Companies Act 2006.
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Supervision of Accounts and Reports (Prescribed Body) and Companies (Defective Accounts and Reports) (Authorised Person) Order 2021.
(2) This Order comes into force on the 21st day after the day on which it is laid.
(3) In this Order—
“DGTR sourcebook” means the Disclosure Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority8under the Financial Services and Markets Act 2000, as it has effect on the day on which this Order is made;
“the 2004 Act” means the Companies (Audit, Investigations and Community Enterprise) Act 2004;
“the 2006 Act” means the Companies Act 2006;
“the FRC” means the Financial Reporting Council Limited;
“LLPs” means limited liability partnerships.
Appointment in relation to issuers
2.—(1) The FRC is appointed to exercise the functions mentioned in section 14(2) of the 2004 Act in respect of any issuer of transferable securities admitted to trading on a UK regulated market which is a body corporate.
(2) In paragraph (1), “issuer” does not include a person which is not required to comply with the reporting requirements of Section 1 of Chapter 4 (annual financial report) and Section 2 of Chapter 4 (half-yearly financial reports) of the DGTR sourcebook by virtue of—
(a)
(a) rule 4.4.1, rule 4.4.2 (exemptions) and TP 1.19 (exemption for certain large debt securities issuers) of the DGTR sourcebook, or
(b)
(b) applicable rules in the Listing Rules, Prospectus Regulation Rules and DGTR sourcebook of the Financial Conduct Authority Handbook made under the Financial Services and Markets Act 2000 (where the Listing Rules and the Prospectus Regulation Rules means those Rules as they had effect on the day on which this Order is made).
Appointment in relation to accounts
3. The FRC is appointed to exercise the functions mentioned in section 14(2) of the 2004 Act under this Order only in respect of the periodic accounts and reports required to be produced under Section 1 of Chapter 4 (annual financial report) and Section 2 of Chapter 4 (half-yearly financial reports) of the DGTR sourcebook.
Authorisation
4. The FRC is authorised for the purposes of section 456 of the 2006 Act (application to court in respect of defective accounts or reports).
Requirements for recording decisions
5. The FRC must have satisfactory arrangements for—
(a) recording decisions made in connection with the functions it exercises by virtue of its appointment under articles 2 and 3 and its authorisation under article 4 of this Order; and
(b) the safekeeping of all material records.
Consequential amendments
6.—(1) The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 20089, which apply the 2006 Act to LLPs, are amended in accordance with paragraphs (2) to (5).
(2) In regulation 23, as it applies subsection (1)(b) of section 456 of the 2006 Act (application to court in respect of defective accounts, strategic report or energy and carbon report) to LLPs, for...
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