For paragraph 16A of Schedule 10 to the Companies Act 2006 (rules of recognised supervisory bodies as to transfer of papers to third countries) [Paragraph 16A was inserted by regulation 24 of S.I. 2007/3494.], and the heading before it, substitute -

"16A. Transfer of papers to third countries

(1) The body must have adequate rules and practices designed to ensure that a person eligible under its rules for appointment as a statutory auditor transfers audit working papers to a third country competent authority only in accordance with the requirements of -

(a) paragraph 16AA (transfer to approved third country competent authority), or

(b) paragraph 16AB (transfer for purposes of investigation).

(2) The body must also have adequate rules and practices designed to ensure that a person eligible under its rules for appointment as a statutory auditor must refuse to transfer audit working papers to a third country competent authority if the Secretary of State directs under section 1253E(6) that such a transfer should not take place.

16AA. Transfer to approved third country competent authority

The requirements of this paragraph are that -

(a) the transfer is to an approved third country competent authority, and

(b) the Secretary of State has approved the transfer.

16AB. Transfer for purposes of investigation of auditor

(1) The requirements of this paragraph are that -