Government amends small business auditing rules

News Article - 19 October 2006
Category:

The government has announced reforms on the audit requirement rules for small financial services companies.

Jim Fitzpatrick, the trade and industry minister, said that small firms regulated by the Financial Services Authority (FSA) would be exempted from mandatory audits.

This could save up to £18 million a year for 4,690 small financial services firms and appointed representatives, the minister stated.

Smaller companies will now be able to take advantage of less stringent reporting requirements, which will come into effect on November 8th.

The reforms have come about after a recent FSA study suggested that auditing costs to smaller financial services firms were greater than the benefits, leading the government to broaden the existing regulations.

Consumers will not be affected as the capital requirements for firms will remain unchanged, while those holding client money will still be required to have this audited.

The government reforms come in response to a proposal by the FSA made earlier this year.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »