Recognised Auditor Requirements

Overview

In addition to meeting the General Auditor Requirements under the Companies Act 1982, audit firms seeking to audit “market traded companies” incorporated in the Isle of Man need to be registered with the Isle of Man Financial Services Authority (‘the Authority’) as a Recognised Auditor. Recognised Auditors are subject to monitoring by the Institute of Chartered Accountants in England and Wales (‘ICAEW’) and oversight by the ICAEW and/or the Financial Reporting Council (‘FRC’) in the United Kingdom (‘UK’).

The term “market traded companies” is defined in European Union (‘EU’) legislation and in the legislation below, however it generally refers to companies whose transferrable securities are admitted to trading on an EU “regulated market” or on a UK regulated market. The term “regulated market” is defined in the legislation and includes, for example, the Main Market of the London Stock Exchange but does not include the Alternative Investment Market (‘AIM’). 

Further information regarding “market traded companies” and “regulated markets” may be found on the relevant EU website. (Please note that the Authority cannot take responsibility for the content of other websites).

In June 2013, the European Commission confirmed decision 2013/288/EU that the Isle of Man’s auditor oversight regime is considered equivalent to that of EU auditor regulators in respect of the supervision of auditors and audit firms.

Note: The information on this webpage is intended as a general guide only and must be read in conjunction with the relevant legislation. It should not be relied upon as a substitute for legal advice.

Registration

Auditors may apply to the Authority for registration as a Recognised Auditor under the Register of Recognised Auditors Regulations 2010 (as amended). These Regulations list the criteria for entry onto the Register of Recognised Auditors (‘the Register’).

The Register contains information about each Recognised Auditor.

Recognised Auditors must agree to be bound by the ICAEW's Crown Dependencies’ Audit Rules and Guidance (‘the Rules’). These are common to the Isle of Man, Guernsey and Jersey and are based on the rules of the ICAEW in the UK.

Recognised Auditors must agree to monitoring by the ICAEW and oversight by the ICAEW and/or bodies of the FRC.

Legislation and rules

The following links are to legislation and rules relating to the Register, as established under s14G of the Companies Act 1982:

• Register of Recognised Auditors Regulations 2010 (as amended)
• Accounting (Recognised Auditors) Regulations 2010 (as amended)
• Public Oversight of Recognised Auditors Regulations 2010 (as amended)
• Crown Dependencies Audit Rules and Guidance ( and related ICAEW information)

Fees

Fees are payable by Recognised Auditors upon application as well as for on-going registration and monitoring. Fees payable to the Authority are specified in the Register of Recognised Auditors Regulations 2010 (as amended):

• £1,405 application fee
• £1,055 annual fee, payable by 15 September
• £120 fee to request the addition of a Responsible Individual to an existing registration

Recognised auditors are also subject to fees in connection with the monitoring arrangements of the ICAEW and the oversight work by the FRC. Please see the ICAEW’s Audit requirements in the Crown Dependencies webpage for further information.

Applying for registration to become a Recognised Auditor

Auditors applying for registration as a Recognised Auditor must submit an Application Form (as amended) and application fee of £1,405 to the Authority.

A Notification of Appointment of Responsible Individual Form (as amended) is required for each designated Responsible Individual.

Applications for authorisation should be sent by post to the following address and may be copied by email to Policy@iomfsa.im:

Legal, Policy & Risk Division
Isle of Man Financial Services Authority
PO Box 58
Finch Hill House
Bucks Road
Douglas
Isle of Man
IM99 1DT

Annual returns for Recognised Auditors

Recognised Auditors must complete an Annual Return Form (as amended) as at 1 September for submission to the Authority along with an annual fee of £1,055 by 15 September every year in order to remain on the Register.

Request for the addition of a Responsible Individual

Existing Recognised Auditors may request the addition of a Responsible Individual by submitting a Notification of Appointment of Responsible Individual Form (as amended) along with the applicable fee of £120.

Questions?

If you have any questions regarding Recognised Auditors, please contact a member of the Legal, Policy & Risk Division from the Contact details webpage.