Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I move amendment No. 27:

In page 95, between lines 16 and 17, to insert the following:“(3) (a) The Central Bank may, by notice in writing given to a statutory auditor or audit firm, require the auditor or firm to give it, within the period specified in the notice, additional information if such information is necessary for effective financial market supervision as provided for in the law of the State.

(b) The statutory auditor or audit firm the subject of a notice under paragraph (a) shall comply with the notice.”.

This amendment is proposed to rectify an oversight whereby text contained in the heads of the Bill was not included in the Bill as initiated. Article 12 of the EU audit regulation places an obligation on statutory auditors of public interest entities to report certain information where they become aware of it while carrying out an audit of the entity. The information is concerned with a material breach of the laws, regulations or administrative provisions which lay down, where appropriate, the conditions governing authorisation or which specifically govern pursuit of the activities of such public interest entities, a material threat or doubt concerning the continuous functioning of the public interest entity, and a refusal to issue an audit opinion on the financial statements or the issuing of an adverse or qualified opinion.

There is also an option at Article 12.1 that permits member states to request additional information from statutory auditors or audit firms of public interest entities provided it is necessary for effective financial market supervision as provided for in national law. As indicated to Deputies in the briefing on the Bill, the Government intends to exercise this option. Accordingly, amendment No. 27 inserts a provision to state that the Central Bank is the authority that can request this information from a statutory auditor or audit firm.