(This note is not part of the Regulations)

These Regulations provide for companies to disclose fees receivable by their auditors and their auditors’ associates’ and also to disclose liability limitation agreements that they make with their auditors. Disclosure must be in a note to the company’s annual accounts.

Small and medium-sized companies (defined in regulation 3(2)(a) and (b) in the same way as in the Companies Act 2006) must disclose the fee paid to their auditors for the audit itself (regulation 4). The Secretary of State (or, if a delegation order is made under section 1252 of the Companies Act 2006, the body to whom the Secretary of State’s functions are delegated) may require the auditors of a medium-sized company to give him limited information about other fees paid to them if the company does not voluntarily disclose that information itself (regulation 4(4)): this provision implements Article 49.1(c) of Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audit of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (O.J. L157, 9.6.2006, p. 87).