Auditor Requirements for Isle of Man Companies
The Financial Supervision Commission (‘the Commission’) wishes to remind all corporate service providers of relevant legislative requirements for the appointment of auditors to Isle of Man companies.
There are two key issues that directors need to consider when appointing an auditor to an Isle of Man company —
Auditor qualification requirements
The qualification requirements for auditors of Isle of Man companies contained within sections 14–14H of the Act apply to companies incorporated under the Companies Act 1931 and the Companies Act 2006. In order to qualify for appointment an auditor must be a member of one of the following ‘Recognised Accountancy Bodies’:
(a) the Institute of Chartered Accountants in England and Wales (‘ICAEW’);
(b) the Institute of Chartered Accountants of Scotland;
(c) the Institute of Chartered Accountants in Ireland;
(d) the Association of Chartered Certified Accountants;
(e) the Chartered Institute of Public Finance and Accountancy; or
(f) the Association of Authorised Public Accountants.
An auditor that is not a member of one of the above bodies may apply to the Commission for authorisation in accordance with section 14E of the Act. Authorisations under section 14E are only granted in exceptional cases where the applicant satisfies the Commission’s authorisations criteria. Further details on this process can be found under Section B of the Commission’s Auditors webpage.
Recognised Auditors for ‘market traded companies’
In addition to the qualification requirements under the Act, auditors of any Isle of Man ‘market traded companies’ must be registered with the Commission as ‘Recognised Auditors’ under the Register of Recognised Auditor Regulations 2010.
The term ‘Market traded companies’ is defined in European Union (‘EU’) legislation and includes, for example, the main market of London Stock Exchange but does not include the Alternative Investment Market.
Further information on the ‘Recognised Auditors’ regime can be found under Section A of the Commission’s Auditors webpage.
Please contact the following individuals if you have any questions in relation to the above:
For Recognised Auditor queries:
For Section 14E Authorisation queries: