PRESS RELEASE 5 January 2009
COMPANIES (AMENDMENT NO. 4) (JERSEY) REGULATIONS 200-
The Commission has today published a Consultation Paper on draft legislation, the Companies (Amendment No. 4) (Jersey) Regulations 200- (the “Regulations”), that would amend the Companies (Jersey) Law 1991 (the “Companies Law”) to:
- firstly, respond to the impact on Jersey auditors of European Union Directive 2006/43/EC (the “Statutory Audit Directive”); and
- secondly, improve Jersey’s level of compliance with an international standard issued by the International
of Securities Commissions (“IOSCO”) relating to accounting and auditing standards.
The Statutory Audit Directive introduces harmonised provisions in all European Union (“EU”) Member States relating to auditor eligibility and independent oversight.
Once certain transitional provisions have expired, the Statutory Audit Directive will subject auditors of Jersey companies with securities admitted to trading on a regulated market in the EU to the auditor registration and oversight provisions in the relevant Member State where the company’s securities are admitted to trading. However, an EU Member State may grant a derogation
from this requirement (but will not be obliged to grant such a derogation) where the auditor is subject to an EU equivalent
system of public oversight, quality assurance, investigations and penalties.
The Regulations would amend the Companies Law so that Jersey can establish an auditor oversight regime that should meet the equivalence requirements of the Statutory Audit Directive. The introduction of such a regime may avoid the need for a
- to apply for registration in each Member State in which it acts as an auditor to a Jersey company whose securities are admitted to trading on a regulated market (or allow it to benefit from “lighter touch” registration); and
- to be subject to the systems of oversight, quality assurance, investigation and penalties in each Member State in which
it is registered,
although it will be up to each Member State to determine the extent to which it recognises the equivalence of Jersey’s regime.
Certainly, the application of full Statutory Audit Directive requirements by more than one Member State would prove to be
quite onerous and expensive. For example, a local auditor auditing Jersey companies with securities admitted to trading on
stock exchanges in London, Frankfurt, Dublin and Luxembourg, would be required to register with, and follow rules set by,
the competent authorities in four Member States.
The Regulations would also amend the Companies Law to enhance Jersey’s level of compliance with an international standard
on accounting and auditing standards issued by IOSCO. Specifically, the Companies Law would be amended to:
- provide for statutorily prescribed accounting standards to be adopted by Jersey companies whose securities are admitted
to trading on a regulated market in the EU; and
- provide a mechanism for enforcing compliance with accounting and auditing standards that apply to companies whose
securities are admitted to trading on a regulated market in the EU.
A copy of the Consultation Paper can be downloaded from the Commission’s Website by clicking here.
The Commission is seeking comments from interested parties by 31 March 2009.
- Ends -
For further information please contact: -
Andrew Le Brun - Director, International & Policy
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822001