1. The competent authority shall regularly monitor the developments in the market for providing statutory audit services to public-interest entities and shall in particular assess the following:

(a) the risks arising from high incidence of quality deficiencies of a statutory auditor, including systematic deficiencies within a network, which may lead to the demise of any firm in the network, the disruption in the provision of statutory audit services whether in a specific sector or across sectors, the further accumulation of risk of audit deficiencies and the impact on the overall stability of the financial sector;

(b) the market concentration levels, including in specific sectors;

(c) the performance of audit committees;

(d) the need to adopt measures to mitigate the risks referred to in point (a).

2. By 17 June 2019, and at least every three years thereafter, the competent authority, shall draw up a report on developments in the market for providing statutory audit services to public-interest entities and submit it to the Secretary of State.