(1) An auditor to whom section 342 or 343 of the Act applies must communicate to the FCA, the PRA or, the Bank of England information on, or his opinion on, matters mentioned in section 342(3)(a) or 343(3)(a) of the Act (matters of which he has, or had, become aware in his capacity as auditor of an authorised person or recognised body or as auditor of a person who has close links with an authorised person or recognised body) in the following circumstances.

(2) The circumstances are that -

(a) the auditor reasonably believes that, as regards the person concerned -

(i) there is or has been, or may be or may have been, a contravention of any relevant requirement that applies to the person concerned; and

(ii) that contravention may be of material significance to the FCA, the PRA or the Bank of England in determining whether to exercise, in relation to the person concerned, any functions conferred on that regulator by or under any provision of the Act other than Part VI;