SUP 3A.6 Relevant institutions’ cooperation with their auditors

A relevant institution must cooperate with its auditor in the discharge of the auditor’s duties under this chapter.

In complying with SUP 3A.6.1R, a relevant institution should give a right of access at all times to the institution’s accounting and other records, in whatever form they are held, and documents relating to its business. A relevant institution should allow its auditor to copy documents or other material on the premises of the institution and to remove copies or hold them elsewhere, or give its auditor such copies on request.

Section 341 of the Act (Access to books etc.), as applied by the Payment Services Regulations and the Electronic Money Regulations, provides that an auditor of a relevant institution appointed under SUP 3A.3:

1. (1) has a right of access at all times to the relevant institution's books, accounts and vouchers; and

2. (2) is entitled to require from the relevant institution's officers such information and explanations as they reasonably consider necessary for the performance of their duties as auditor.

Sections 499 and 500 of the Companies Act 2006 give similar rights to auditors of companies.

Section 413 (Protected items) of the Act, as applied by the Payment Services Regulations and the Electronic Money Regulations, under which no person may be required to produce, disclose or permit the inspection of protected items, is relevant to SUP 3A.6.1R and SUP 3A.6.3G.

In complying with SUP 3A.6.1R, a relevant institution should take reasonable steps to ensure that each of its agents and distributors gives the institution’s auditor the same rights of access to the books, accounts and vouchers of the agent or distributor and entitlement to information and explanations from the agent's or distributor's officers as are given in respect of the relevant institution by section 341 of the Act, as applied by the Payment Services Regulations and the Electronic Money Regulations.

In complying with SUP 3A.6.1R, a relevant institution should take reasonable steps to ensure that each of its suppliers under a material outsourcing arrangement gives the institution’s auditor the same rights of access to the books, accounts and vouchers of the institution held by the supplier, and entitlement to information and explanations from the supplier’s officers as are given in respect of the relevant institution by section 341 of the Act, as applied by the Payment Services Regulations and the Electronic Money Regulations.

In complying with SUP 3A.6.1R, a relevant institution should take reasonable steps to ensure that all its employees cooperate with its auditor in the discharge of its auditor’s duties under this chapter.

Relevant institutions and their officers, managers and controllers are reminded that, under section 346 of the Act (Provision of false or misleading information to auditor or actuary), as applied by the Payment Services Regulations and the Electronic Money Regulations, knowingly or recklessly giving false information to an auditor appointed under SUP 3A.3 constitutes an offence in certain circumstances, which could render them liable to prosecution. This applies even when an auditor is also appointed under an obligation in another enactment.