Mandatory Rotation: For all PIEs it will be mandatory to rotate the audit firm after 10 years and within that cycle, an audit partner can only serve for a maximum of five years. The transition arrangements depend on the length of the existing relationship as relationships that have been established for longer than 11 and 20 years as of June 2014 have more time to transition. The rules also set out requirements in respect of the procedures for the selection and appointment of a new auditor.
Non-Audit Services are also impacted; for a PIE, the non-audit services which the statutory auditor (and its network) may provide within the EU are restricted.
Audit reports are also impacted by way of additional information requirements.
Fortunately, the onerous requirements set out in these regulations in respect of audit committees are dis-applied in respect of UCITS* and AIFS.
*UCITS PLCs are required to comply with Companies Act, 2014 audit committee requirements (which are not as onerous).