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Section 343 Information given by auditor or actuary to a regulator: persons with close links.F14I1C1C2C3C4C5C6

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

This section applies to a person who—

(a)

is, or has been, an auditor of an authorised person F1or recognised investment exchange, appointed under or as a result of a statutory provision; and

(b)

is, or has been, an auditor of a person (“CL”) who has close links with the authorised person F2or recognised investment exchange.

(2)

This section also applies to a person who—

(a)

is, or has been, an actuary acting for an authorised person and appointed under or as a result of a statutory provision; and

(b)

is, or has been, an actuary acting for a person (“CL”) who has close links with the authorised person.

(3)

An auditor or actuary does not contravene any duty to which he is subject merely because he gives to F3a regulator—

(a)

information on a matter concerning the authorised person F4or recognised investment exchange of which he has, or had, become aware in his capacity as auditor of, or actuary acting for, CL, or

(b)

his opinion on such a matter,

if he is acting in good faith and he reasonably believes that the information or opinion is relevant to any functions of F5that regulator.

(4)

Subsection (3) applies whether or not the auditor or actuary is responding to a request from the F6regulator.

(5)

The Treasury may make regulations prescribing circumstances in which an auditor or actuary must communicate matters to F7a regulator as mentioned in subsection (3).

(6)

It is the duty of an auditor or actuary to whom any such regulations apply to communicate a matter to a regulator in the circumstances prescribed by the regulations.

F8(6A)

If the authorised person concerned is a credit institution or an investment firm, and an auditor or actuary communicates a matter to a regulator in accordance with the regulations, the matter must be disclosed simultaneously to the management body of the authorised person, unless there are compelling reasons not to do so.

(7)

The matters to be communicated to a regulator in accordance with the regulations may include matters relating to persons other than the authorised person F9or recognised investment exchange concerned.

(8)

CL has close links with the authorised person F10or recognised investment exchange concerned (“A”) if CL is—

(a)

a parent undertaking of A;

(b)

a subsidiary undertaking of A;

(c)

a parent undertaking of a subsidiary undertaking of A; or

(d)

a subsidiary undertaking of a parent undertaking of A.

F11(9)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(10)

In subsection (6A) F13“investment firm” has the same meaning as in Article 4(1) of the capital requirements regulation.

Annotations

Textual amendments

F1

Words in s. 343(1)(a) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(2)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F2

Words in s. 343(1)(b) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(2)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F3

Words in s. 343(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(3)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F4

Words in s. 343(3) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(3)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F5

Words in s. 343(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(3)(c) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F6

Word in s. 343(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(4) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F7

Words in s. 343 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(7) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F8

S. 343(6A) inserted (1.1.2014) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(2), Sch. 2 para. 21(2)

F9

Words in s. 343(7) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(5) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F10

Words in s. 343(8) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(6) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F11

S. 343(9) omitted (31.12.2020) by virtue of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 68(a); 2020 c. 1, Sch. 5 para. 1(1)

F12

S. 343(10) inserted (1.1.2014) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(2), Sch. 2 para. 21(3)

F13

Words in s. 343(10) substituted (31.12.2020) by The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 68(b); 2020 c. 1, Sch. 5 para. 1(1)

F14

Words in s. 343 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 13 para. 5(7) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications

C1

Ss. 341-346 applied (with modifications) (1.11.2009) by The Payment Services Regulations 2009 (S.I. 2009/209), regs. 1(2)(c), 95, Sch. 5 para. 4 (with reg. 3)

C2

S. 343 applied (with modifications) (3.1.2018) by The Data Reporting Services Regulations 2017 (S.I. 2017/699), regs. 1(2)(b), 34

C3

Ss. 341-346 applied (with modifications) (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 6 para. 7 (with reg. 3)

C4

S. 343 applied (with modifications) (27.2.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2), 20

C5

S. 343 applied (with modifications) (10.6.2019) by The Proxy Advisors (Shareholders Rights) Regulations 2019 (S.I. 2019/926), regs. 1, 20, 23

C6

S. 343 applied (with modifications) (5.4.2024) by The Data Reporting Services Regulations 2024 (S.I. 2024/107), regs. 1(2), 20; S.I. 2023/1382, reg. 4(c)

Commencement

I1

S. 343 wholly in force at 1.12.2001; s. 343 not in force at Royal Assent see s. 431(2); s. 343(5) in force at 25.2.2001 by S.I. 2001/516, art. 2(a), Sch. Pt. 1; s. 343 in force in so far as not already in force at 1.12.2001 by S.I. 2001/3538, art. 2(1)

Notes on Part XXII

Modifications

C1

Pt. 22 applied (with modifications) (30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), regs. 1(2)(b), 62, Sch. 3 para. 5 (with reg. 3) (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 196(5)(e) and (18.9.2023) by S.I. 2023/790, regs. 1(2)(a), 2(3)(b))