Governance in brief: Summary of final FTSE 350 audit tendering requirements
Published on:
23 Oct, 2013
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On 15 October the Competition Commission published its final decision on remedies closing the chapter on its inquiry into the statutory audit market for FTSE 350 companies. The Commission has now issued its final report which sets out further details on implementation, enforcement and transitional provisions.
The key areas of the remedy package are:
- Mandatory tendering every ten years for FTSE 350 companies, FRC’s comply or explain regime removed.
- Some FTSE 350 companies will have to re-think their planned audit tender dates.
- After five years of the same auditor companies must explain in their audit committee report when they plan to tender the audit and why it is in shareholders’ interest not to tender until that date.
- Audit committees must certify in their audit committee report that they have complied with the forthcoming Order.
The new rules are to apply with effect from 1 October 2014
