(1) An investment firm shall arrange for an external auditor to prepare a report as part of, or in addition to, the report required under paragraph 7 of Schedule 3 to the MiFID Regulations (in this Part referred to as an "assurance report") in relation to that investment firm's safeguarding of client assets at least on an annual basis.
(2) An investment firm shall ensure that the external auditor appointed for the purposes of paragraph (1) -
(a) has the necessary resources and skills relating to the business of the investment firm,
(b) receives the investment firm's full cooperation in a timely manner in relation to conducting the client asset examination and the preparation of the assurance report,
(c) in addition to the requirements of paragraph 7 of Schedule 3 to the MiFID Regulations, reports as to whether, throughout the period to which the client asset examination relates -
(i) the investment firm has maintained processes and systems adequate to meet the requirements of this