Corporate Members’ Accounting, Audit and Compliance

Accounts and audit

1. Every corporate member which is not required to maintain accounting records and prepare accounts in accordance with – 

(a) the requirements of Part VII of the Companies Act 1985; or 

(b) other legislation implementing the Insurance Accounts Directive (91/674/EEC) 

shall maintain accounting records and prepare accounts in respect of every financial year ending after it becomes a member as if Part VII of the Companies Act 1985 applied to it or prepare accounts in such other form and containing such information as the Council may otherwise prescribe (whether generally or in relation to a particular case).

Membership Byelaw, paragraph 30

2. Every corporate member which is required to prepare accounts in accordance with legislation implementing the Insurance Accounts Directive (91/674/EEC) or under paragraph [1. above] shall procure that 

(a) those accounts are examined by an auditor which is eligible to act as an auditor for a corporate member in accordance with such requirements as the Council may from time to time prescribe; and 

(b) such auditor prepares a report which complies with the requirements of the Companies Act 1985 or, in the case of corporate members which are incorporated in a member state of the European Union other than the United Kingdom, legislation implementing Article 51(2) of Fourth Council Directive (78/660/EEC) or such other requirements as the Council may from time to time prescribe.

Membership Byelaw, paragraph 31

Audit

3. A person shall be eligible to act as auditor for a corporate member if –

(a) in the case of a corporate member to which Part VII of the Companies Act 1985 applies, he has been appointed as the auditor of that corporate member in accordance with the provisions of the Companies Act 1985;

(b) in the case of a corporate member which is incorporated in any member state of the European Community other than the United Kingdom, he is qualified to act as an auditor of a company for the purposes of the legislation of that member state which implements the Eighth Council Directive (84/253/EEC);

(c) in any other case, the Council has given its prior written consent.

Requirements made under the Membership Byelaw, paragraph 9

4. The Council may at any time require a corporate member to procure that its auditor executes an undertaking in the required form and accompanied by such other documents and information as the Council may prescribe.

Membership Byelaw, paragraph 32

5. Every year, each corporate member which is required to prepare accounts in accordance with legislation implementing the Insurance Accounts Directive (91/674/EEC) or under paragraph [1. above] shall submit those accounts to the Council together with the report of the auditor prepared under paragraph [2. above] and accompanied by such other documents and information as the Council may prescribe and within such period as the Council may prescribe.

Membership Byelaw, paragraph 33

Declaration of Compliance

6. Every year, each corporate member shall compile and submit to the Council a declaration of compliance in the required form and accompanied by such other documents and information as the Council may prescribe and within such period as the Council may prescribe (“declaration of compliance”).

Membership Byelaw, paragraph 34