Local Audit and Accountability Act 2014

Schedule 1B External registration bodies

Section 6B(7) Provision of information to the Local Audit Office 1 (1) An external registration body must comply with any written request by the Local Audit Office to be provided with information. (2) Such a request may relate to information as it exists in the future (for instance, information about a future occurrence once it has occurred or about a future period once it has elapsed). (3) The Office may make such a request only if the Office reasonably requires the information concerned in connection with the performance of its functions. Directions to secure compliance 2 (1) If the Local Audit Office considers that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5), the Office may give the body a direction under this paragraph. (2) A direction under this paragraph is one directing the body to take steps that the Office considers will— (a) secure that the requirement in question is complied with, or (b) mitigate the effect, or prevent the recurrence, of the failure of compliance. (3) Such a step— (a) must be one that the body has the power to take; (b) may consist of not doing something. (4) A direction under this paragraph must— (a) explain the Office’s reasons for giving the direction, and (b) specify the time by which the direction must be complied with. Financial penalties 3 (1) If the Local Audit Office considers that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5), the Office may impose a financial penalty on the body. (2) A financial penalty is imposed by giving the body a written notice requiring the body to pay the Office a financial penalty of a sum specified in the notice. (3) Such a notice must— (a) explain the Office’s reasons for imposing the penalty, and (b) specify the time by which, and manner in which, the penalty must be paid. (4) An external registration body must, as soon as practicable after the end of a financial year, notify the Office of its total income in that year from fees charged under section 6A(5). (5) The amount of a penalty imposed on a body under this paragraph may not exceed 30% of the sum last notified by the body under sub-paragraph (4). Directions and penalties: procedure etc 4 (1) Before giving a direction under paragraph 2 or imposing a penalty under paragraph 3, the Local Audit Office must— (a) give the body a notice of intent, and (b) consider any representations made by the body in response to (and in accordance with) that notice. (2) A notice of intent is a notice that— (a) states the Office’s intention to give the direction or impose the penalty, (b) sets out the intended terms of the direction or of the notice imposing the penalty, (c) explains the Office’s reasons for intending to give the direction or impose the penalty, and (d) specifies the time by which, and manner in which, representations may be made. (3) Where the Office has given a direction under paragraph 2 or imposed a penalty under paragraph 3, the Office may by written notice given to that body— (a) cancel the direction or penalty, or (b) vary the direction, or the notice imposing the penalty, in any way that does not make it more onerous. (4) The Office must publish— (a) a direction under paragraph 2, (b) a notice imposing a penalty under paragraph 3, and (c) any notice cancelling or varying such a direction or notice. (5) But it must do so only after the direction or penalty can no longer be cancelled or varied on appeal (ignoring any possibility of an appeal out of time). (6) If a penalty imposed under paragraph 3 is not paid in time— (a) the penalty (or the unpaid part of it) carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838; (b) the Office may recover the penalty (or the unpaid part of it), with the interest, as a debt. Directions and penalties: appeals 5 (1) An external registration body may appeal to the High Court against a direction given to it under paragraph 2 or a penalty imposed on it under paragraph 3. (2) The grounds on which an appeal may be brought are— (a) that the failure of compliance on the grounds of which the direction was given or the penalty was imposed did not occur, or (b) that any of the following is unreasonable— (i) the decision to give the direction or impose the penalty; (ii) any of the terms of the direction; (iii) the amount of the penalty, or the time or manner of its payment. (3) If satisfied that any of those grounds is made out, the court must allow the appeal and do whichever of the following it considers appropriate— (a) cancel the direction or penalty, or (b) vary the direction or the notice imposing the penalty. (4) Otherwise, the court must dismiss the appeal. (5) The court may— (a) make an interim order suspending the effect of a direction or penalty appealed against under this paragraph; (b) if it allows an appeal under this paragraph against a penalty, make any order as to interest that it considers appropriate (including an order varying the effect of paragraph 4(6)(a)). Compliance orders by the court 6 (1) This paragraph applies if the High Court is satisfied, on an application by the Local Audit Office, that an external registration body has failed to comply with a requirement under— (a) this Act, or (b) an agreement under section 6B(5). (2) The court may order the body to take steps that the court considers will secure that the requirement in question is complied with. (3) Such a step— (a) must be one that the body has the power to take; (b) may consist of not doing something. (4) This court may not make an order under this paragraph in respect of the requirement to comply with a direction under paragraph 2 unless it is satisfied that the failure of compliance on the ground of which the direction was given did in fact occur. Directions with respect to international obligations 7 (1) If it appears to the Secretary of State or the Local Audit Office— (a) that any action proposed to be taken by an external registration body would be incompatible with assimilated obligations or any other international obligations of the United Kingdom, or (b) that any action which an external registration body has power to take is required for the purpose of implementing any such obligations, the Secretary of State or the Office may direct the body not to take or, as the case may be, to take the action in question. (2) A direction under this paragraph— (a) may include such supplementary or incidental requirements as the Secretary of State or the Office thinks necessary or expedient, and (b) may be varied or cancelled by written notice to the body concerned. (3) A direction under this paragraph is enforceable by injunction issued by the High Court on the application of the Secretary of State or the Office. Exemption from liability in damages 8 (1) No person within sub-paragraph (2) is to be liable in damages for anything done or omitted in the discharge or purported discharge of functions to which this sub-paragraph applies. (2) The persons within this subsection are— (a) an external registration body, (b) an officer or employee of such a body, and (c) a member of the governing body of such a body. (3) Sub-paragraph (1) applies to the functions of an external registration body so far as relating to, or to matters arising out of, any of the following— (a) rules and arrangements made for the purposes of Schedule 1C or any agreement under section 6B(5)(a), or (b) any guidance or recommendation within sub-paragraph (4). (4) Guidance or a recommendation is within this sub-paragraph if— (a) it is issued or made by the external registration body to all or any class of the persons who are or are seeking to become— (i) registered in the body’s local audit register, or (ii) listed in accordance with paragraph 6 of Schedule 1C (list of firm’s lead partners), and (b) it is relevant for the purposes of this Act, including any guidance or recommendation relating to entry in or removal from the register or list. (5) Sub-paragraph (1) does not apply— (a) if the act or omission is shown to have been in bad faith, or (b) so as to prevent an award of damages in respect of the act or omission on the ground that it was unlawful as a result of section 6(1) of the Human Rights Act 1998 (acts of public authorities incompatible with Convention rights).