On Apr. 3, 2025, UK GVT issued The companies act 2006 (recognition of third country qualifications and practical training) (amendment) regulations 2025 (StIn 2025/444).
The relevant sifting committees of the house of commons and the house of lords confirmed they were content with proposals on Mar. 19 and Mar. 26, respectively.
Makes amendments to provisions in Companies act 2006 on overseas qualifications of auditors that may be recognized in different ways for the purpose of enabling a holder of a qualification to obtain eligibility for appointment as a statutory auditor in the UK.
Provides for both individuals and firms to obtain eligibility for appointment in the UK but requires that only an individual who is eligible for appointment may sign an audit report on the accounts of an audited business on behalf of an appointed audit firm.
Eligibility must be based on that individual holding an appropriate qualification.
Regs revoke and replace provisions in s.1221 of and para 9(4), (5) of Sch 11 to Companies act 2006 re approval of third country audit qualification and requirement for minimum level of practical training for recognition of professional qualification.
The regulations come into force on May 14, 2025.
On Mar. 17, UK GVT issued draft law on practical training in audit.
UK GVT published statutory guidance on draft Companies act 2006 (recognition of third country qualifications and practical training) (amendment) regulations 2025.
Draft regs have been re-laid before UKP after having originally been laid in May 2024.
Follows UK GVT Mar. 2025 confirmed draft regs have been re-laid, see #213219.
Summary
Instrument laid for sifting by the sifting committees on Mar. 12 as it includes changes made under section 14(2) of the Retained EU law (revocation and reform) act 2023.
Proposed that it be subject to approval under the negative resolution procedure.
Instrument amends Companies act 2006 so auditors from countries, beyond EEA, can provide practical training in audit, contribute to UK qualification requirements.
Clarifies how third-country audit qualifications can be recognized via mutual recognition arrangements by better aligning with Professional qualifications act 2022.
Potential benefits to the UK skills base in audit, and the ability for UK and overseas audit firms to transfer specialist skills between them, so UK auditors and their firms can take advantage of new commercial opportunities beyond the EU.
Apr. 2025 Regulations Published
On Apr. 3, 2025, UK GVT issued The companies act 2006 (recognition of third country qualifications and practical training) (amendment) regulations 2025 (StIn 2025/444).
The relevant sifting committees of the house of commons and the house of lords confirmed they were content with proposals on Mar. 19 and Mar. 26, respectively.
Makes amendments to provisions in Companies act 2006 on overseas qualifications of auditors that may be recognized in different ways for the purpose of enabling a holder of a qualification to obtain eligibility for appointment as a statutory auditor in the UK.
Provides for both individuals and firms to obtain eligibility for appointment in the UK but requires that only an individual who is eligible for appointment may sign an audit report on the accounts of an audited business on behalf of an appointed audit firm.
Eligibility must be based on that individual holding an appropriate qualification.
Regs revoke and replace provisions in s.1221 of and para 9(4), (5) of Sch 11 to Companies act 2006 re approval of third country audit qualification and requirement for minimum level of practical training for recognition of professional qualification.
