ENFG App 1.4 Disqualification of auditors and actuaries

Auditors and actuaries fulfil a vital role in the management and conduct of firms, AUTs and ACSs. Provisions of the Act, rules made under the Act and the OEIC Regulations impose various duties on auditors and actuaries. The FCA has powers to disqualify auditors and actuaries that breach their duties under these provisions. The FCA also has powers to disqualify auditors in breach of duties imposed by trust scheme rules, contractual scheme rules or the similar FCA rules that apply to ICVCs.

Additionally, the FCA has the power under section 345 of the Act to impose a financial penalty and a public censure on an auditor or actuary in respect of a failure to comply with a duty imposed on the auditor or actuary by rules made by the FCA (ie, SUP 3 , SUP 4 , for ICVCs in COLL 4 , COLL 7 ), or a failure to comply with a duty imposed under the Act to communicate information to the FCA . Actuaries carrying out a designated senior management function as specified in PRA rules will be subject to COCON , and other actuaries that are conduct rules staff will also be subject to parts of COCON applicable to conduct rules staff .

The FCA has the power under sections 249 and 261K of the Act to impose a financial penalty and a public censure on an auditor in respect of a failure to comply with a duty imposed on them by trust scheme rules and contractual scheme rules . The FCA has similar powers under Schedule 5 of the OEIC Regulations for breaches of those FCA rules that apply to ICVCs .

[ Note: The table in ENFG App 2.2 sets out the FCA’s general policy on the exercise of powers in relation to OEICs under the OEIC Regulations .]

The FCA’s statement of policy in relation to the imposition of financial penalties is set out in DEPP 6.2 (Deciding whether to take action) and DEPP 6.4 (Financial penalty or public censure). The FCA’s statement of policy in relation to determining the amount of a financial penalty is set out in DEPP 6.5 to DEPP 6.5D.