# The Income Tax (Building Societies) (Audit Powers) Regulations 1992, Regulation 8: Termination of approval of building society


(1) A building society may, by notice to the Board, terminate the approval given by the Board in its case under regulation 6.
(2) The Board and a building society may agree that the approval given by the Board in its case under regulation 6 shall be terminated.
(3) The Board may, by notice to a building society, terminate their approval of the building society in any of the circumstances specified in paragraph (4).
(4) The circumstances specified in this paragraph are where—
(a) an auditor has failed to furnish an audit report to the Board in respect of the building society within 180 days after the end of the period covered by the audit;
(b) the Board consider that the building society has failed to observe the procedures referred to in regulation 7(2)(a);
(c) the Board consider that the building society has failed within a reasonable time—
(i) to correct errors and omissions of the building society discovered by the auditor when carrying out an audit, or
(ii) to implement any recommendation made by the auditor for the purpose of remedying a failure on the part of the building society to observe the procedures referred to in regulation 7(2)(a);
(d) the building society has failed to make available to the auditor any books, documents, records or other information referred to in regulation 7(3)(d);
(e) the Board consider that the auditor instructed by the building society has failed to discharge his responsibilities in relation to the carrying out of any audit or the making of any audit report pursuant to these Regulations, and the building society fails to instruct another auditor;
(f) the Board have grounds for believing, whether in consequence of an audit report or otherwise, that there has been fraudulent conduct or collusion on the part of the building society in relation to any declaration or certificate referred to in regulation 11 of the Building Societies Regulations, or otherwise in connection with any payment of a dividend or interest in respect of any investment.
(5) Subject to paragraph (6), a termination of approval under paragraph (1), (2) or (3) shall have effect from—
(a) the last day of the latest period in respect of which an audit report has been furnished to the Board within the time stipulated by regulation 7(3)(g); or
(b) if the latest period in respect of which an audit report has been so furnished is a period in which the Board consider there to have been a failure on the part of the building society, or fraudulent conduct or collusion on the part of the building society, in one or more of the circumstances specified in paragraph (4)(b) to (f), the last day of the latest period in which the Board consider that none of those circumstances applies.
(6) If there is no period in which an audit report has been furnished to the Board within the time stipulated by regulation 7(3)(g) or the Board consider that there is no period in which one or more of the circumstances specified in paragraph (4)(b) to (f) does not apply, a termination of approval shall have the like effect as if the building society had not been approved under regulation 6.

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Source: https://www.legislation.gov.uk/uksi/1992/10/regulation/8 (the official version)
Page: https://openlegislation.uk/income-tax-building-societies-audit-powers-regulations-1992/regulation-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.