The UK Government has published a framework document that focuses on the UK’s proposals for a joint approach on company law (accounting and audit).
The role of company law in the economic partnership
UK and EU markets are deeply interconnected. Accounting and audit frameworks facilitate cross border listing of securities. And companies across borders rely extensively on accounting and audit services provided in other countries. This underpins strong markets and contributes to our joint economic prosperity.
Third country regimes for accounting and audit equivalence and adequacy exist in some
Existing third country regimes do not guarantee sufficient stability of coverage by the end of the Implementation Period. UK and EU companies and enforcers need early assurance that our accounting and audit standards will be equivalent, especially given our unique starting point and complete convergence on day one of exit.
They also do not provide sufficient stability that equivalence will continue to provided. Companies and enforcers would benefit from greater confidence that equivalence will not be withdrawn without undue notice.
Existing third country regimes do not cover all accounting and audit issues, notably corporate reporting and audit requirements, and audit firm registrations. We would be interested in exploring the mutual benefits of agreeing provisions on these issues.