COLL 11.5 Auditors

Where a master UCITS and a feeder UCITS have different auditors, those auditors must enter into an information-sharing agreement in order to ensure the fulfilment of their respective duties, including the arrangements taken to comply with COLL 11.5.3 R and COLL 11.5.4 R (Preparation of the audit report).

1. (1)

   The information-sharing agreement referred to in COLL 11.5.1 R must include:

   1. (a)

      identification of the documents and categories of information which are to be routinely shared between both auditors;

   2. (b)

      whether the information or documents referred to in (a) are to be provided by one auditor to the other or made available on request;

   3. (c)

      the manner and timing, including any applicable deadlines, of the transmission of information by the auditor of the master UCITS to the auditor of the feeder UCITS;

   4. (d)

      the co-ordination of the involvement of each auditor in the accounting year-end procedures for their respective scheme;

   5. (e)

      identification of matters that must be treated as irregularities and disclosed in the audit report for the master UCITS for the purposes of COLL 11.5.3R (2);

   6. (f)

      the manner and timing for handling ad hoc requests for assistance from one auditor to the other, including a request for further information on irregularities disclosed in the audit report for the master UCITS; and

   7. (g)

      provisions regarding the preparation of the audit reports referred to in COLL 11.5.3 R and COLL 4.5.12 R (Report of the auditor) and the manner and timing for the provision of the audit report for the master UCITS (and drafts of it) to the auditor of the feeder UCITS.

2. (2)

   Where the feeder UCITS and the master UCITS have different accounting year-end dates, the information-sharing agreement must include the manner and timing by which the auditor of the master UCITS is to make the ad hoc report as required by COLL 11.5.4 R and to provide it (and drafts of it) to the auditor of the feeder UCITS.

3. (3)

   Where a master-feeder agreement exists in accordance with COLL 11.3.2R (1) (Master-feeder agreement and internal conduct of business rules), the information-sharing agreement between the auditors must provide that:

   1. (a)

      the law of the EEA State applying to the master-feeder agreement will also apply to the information-sharing agreement between auditors; and

   2. (b)

      both auditors agree to the exclusive jurisdiction of the courts of that EEA State.

4. (4)

   Where the master-feeder agreement has been replaced by internal conduct of business rules in accordance with COLL 11.3.2R (2) (Master-feeder agreement and internal conduct of business rules), the information-sharing agreement between the auditors must provide that:

   1. (a)

      the law applying to the information-sharing agreement shall be either that of the EEA State in which the feeder UCITS is established or, where different, that of the EEA State in which the master UCITS is established; and

   2. (b)

      both auditors agree to the exclusive jurisdiction of the courts of the EEA State whose law is applicable to the information-sharing agreement.

When preparing its audit report, the auditor of a feeder UCITS must:

1. (1)

   take into account the audit report of the master UCITS; and

2. (2)

   report on any irregularities revealed in the audit report of the master UCITS and their impact on the feeder UCITS.

Where a master UCITS and one or more of its feeder UCITS have different accounting years, the auditor of the master UCITS must make an ad hoc report on the closing date of the accounting year of each feeder UCITS.

The authorised fund managers of a master UCITS and a feeder UCITS must ensure that the terms on which auditors of their respective schemes are appointed require each auditor to comply with the rules in this section.