Smaller companies engaged in insurance mediation and mortgage advisory services will be exempt from statutory audit under new regulations laid before Parliament.
Gerry Sutcliffe, minister for Employment Relations and Consumer Affairs, has announced the change as part of an overhaul of financial reporting and auditing requirements across the UK.
The DTI held consultations earlier this year on specific issues surrounding the implementation of International Financial Reporting Standards and other regulatory issues that have resulted in the latest proposals.
Additional regulations will be introduced as statutory instruments, coming into force in October this year – but September for the smaller financial services companies affected.
Among the changes Sutcliffe says will introduce more flexibility are: removing the requirement to include a summarised director’s report in summary financial statements, removing the requirement to adjust non-comparable prior-year accounts., and changes that will ensure established dividend policies of investment companies are not disrupted.
The statutory instruments involved are:
The Companies Act 1985 (Investment Companies and Accounting and Audit Amendments) Regulations 2005, SI 2005/2280.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November