(This note is not part of the Regulations)

These Regulations make amendments to the UK’s audit regulatory regime in preparation for the end of the transition period.

Regulation 2(2) grants the EEA States and Gibraltar approval as equivalent third countries, and regulation 2(3) grants the competent authorities of the EEA States and Gibraltar approval as approved third country competent authorities, for the purposes of Part 42 of the Companies Act 2006 (c. 46) (as prospectively amended by the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177) (‘the 2019 Regulations’)). These changes will take effect from IP completion day. Previously, the 2019 Regulations granted these countries approval as transitional third countries until 31 December 2020, and their competent authorities provisional approval as approved third country competent authorities until 31 December 2020.

Regulation 3 extends the grant of provisional approval as an approved third country competent authority to the Independent Regulatory Board of Auditors of South Africa. Approval is granted from the end of the Transition Period and previously would have applied until 31 July 2022. It will now apply until 30 April 2026. This reflects Commission Implementing Decision (EU) 2020/589 of 23 April 2020 on the adequacy of the competent authority of the Republic of South Africa pursuant to Directive 2006/43/EC (OJ No L 138, 30.4.2020), p. 15).

An impact assessment has not been produced for this instrument as no, or no significant, impact on the private or voluntary sector is foreseen.