The Department of Trade and Industry (DTI) has extended exemption rules for small to medium sized firms to mortgage and general insurance brokers.
The DTI has introduced three sets of regulations extending the option to prepare and distribute summary financial statements from listed companies to all companies that have had their accounts audited. They also ensure companies preparing their accounts in accordance with International Financial Reporting Standards can continue to use summary financial statements.
The regulations include certain limited simplifications for specific categories of small company, exempting insurance and mortgage brokers from staturtory audit. But the regualtions do not extend to investment IFAs.
The Financial Services Authority (FSA) said in July that is was in discussions with the governmetn to remove the requirement on smaller financial services firms to audit their accounts folloinwg the regulation of both the mortgage and general insurance industries. The FSA said at the time it did not consider the audit requirement to stand following the increase in the number of firms it monitors and said as a result it would be looking to "lighten the load" and cost of regulation on smaller firms.
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