The Financial Reporting Council (FRC) will be given full oversight of auditors, removing the current framework whereby professional bodies are responsible for this
The government will withdraw the 2016 ministerial direction that currently directs the FRC to delegate all those tasks which the law permits to be delegated to the responsible supervisory bodie (RSBs), other than in certain circumstances.
This new ministerial direction will come into effect on 31 July 2022. This will enable the regulator to move forward with reclaiming the function of determining the eligibility criteria for approval of statutory auditors of public interest entities (PIEs).
The regulator will set out in due course how its PIE auditor approval function will operate once it regains the powers. The FRC is already engaging with relevant RSBs and other stakeholders in preparing for this new regime.
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