The competitions regulator is considering reforms to the audit market, announced by the European Commission earlier this month and is set to release a final package of measures for the UK, in line with its administrative work plan announced in January
The then Competitions Commission – now the Competition & Markets Authority (CMA), which has absorbed the work of the Competition Commission - had twice previously revised its administrative timetable.
In January it indicated intentions to delay release of the final orders to ensure any UK legislation was in line with the EU reforms, in order to avoid creating any duplication or contradiction.
The CMA has now confirmed it is currently working on redrafting the orders, which have already been subject to one informal consultation at the end of last year.
According to the administrative timetable, the CMA will now hold a second informal consultation on the revised drafts with key parties in Q2 2014, followed by a 30-day formal public consultation on the text.
The new rules, which include the requirement that all FTSE 350 companies put their statutory audit engagement out to tender at least every ten years, are set to be finalised in Q3 and will come into force by the end of 2014.
The CMA’s administrative timetable is here: https://www.gov.uk/cma-cases/statutory-audit-services-market-investigation
