Explanatory note

These Regulations make provision about agreements (liability limitation agreements) to limit the liability of a local auditor appointed under Part 3 of the Local Audit and Accountability Act 2014 (‘the Act’) in respect of any negligence, default, breach of duty or trust in relation to a “relevant authority” (see section 2 of, and Schedule 2 to, the Act) .

Regulation 2 sets out a restriction on the duration of an agreement: it cannot cover more than the financial year or years to which the appointment of the local auditor relates.

Regulation 3 prevents the agreement from limiting the local auditor’s liability to less than such amount as is fair and reasonable in all the circumstances of the case.

An impact assessment of the effect that the Act, which this instrument helps implement, will have on the costs of business is available from http://www.parliament.uk/documents/impact-assessments/IA13-11A.pdf. No separate assessment was carried out for this instrument.