On 17 December 2013, the European Parliament and the Member States reached a preliminary agreement on the proposal for a Directive amending the Statutory Audit Directive (Directive 2006/43/EC) and the proposal for a regulation on specific requirements regarding statutory audit of publicinterest entities (the “Regulation”). The publication of the amending Directive and the new Regulation on Statutory Audit in the Official Journal of the EU took place on 27 May 2014 (OJ L 158). The Regulation came into effect immediately although there is a two year delay in the application of most of its provisions. Transposition of the Directive into Irish law must take place by 17 June 2016.
Proposed amendments to the Statutory Audit Directive aimed at reforming the audit market within the EU may have implications for any EU domiciled investment funds and specialist debt instruments which are listed on a regulated market, such as the Irish Stock Exchange. The proposals feature a number of proposed changes including:
- a requirement for the rotation of auditors after a period of ten years;
- a limitation on audit firms providing non-audit services such as tax, consultancy or advisory to their listed clients;
- a limitation on fees of auditors for non-audit services in specific circumstances.