Citation, commencement and interpretation

1. —(1) This Order may be cited as the Supervision of Accounts and Reports (Prescribed Body) Order 2007 and shall come into force on 1st October 2007.

(2) In this Order—

“the Act” means the Companies (Audit, Investigations and Community Enterprise) Act 2004 ;

“the prescribed body” means the body known as the Financial Reporting Review Panel established under the articles of association of The Financial Reporting Review Panel Limited;

“regulated market” has the meaning given by Article 4(1)(14) of Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments( 3 );

“the transparency obligations directive” means Directive 2004/109/EC of the European Parliament and of the Council relating to the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market ( 4 ).

Application and revocation

2. —(1) This Order does not apply in respect of periodic accounts and reports relating to financial years beginning before 20th January 2007.

(2) The Supervision of Accounts and Reports (Prescribed Body) Order 2005( 5 ) shall continue to apply in respect of periodic accounts and reports—

(a) to which section 14(2)(a) of the Act as amended by the Companies Act 2006 applies; and

(b) which relate to financial years beginning before 20th January 2007.

(3) Subject to paragraph (2), the Supervision of Accounts and Reports (Prescribed Body) Order 2005 is revoked.

Appointment in relation to issuers

3. —(1) The prescribed body is appointed to exercise the functions mentioned in section 14(2) of the Act in respect of any issuer of transferable securities admitted to trading on a regulated market which is—

(a) a body corporate incorporated or otherwise formed under the law of, or of a part of, the United Kingdom of which the United Kingdom is the home Member State for the purposes of the transparency obligations directive;

(b) a body corporate incorporated or otherwise formed under the law of a place outside the United Kingdom of which the United Kingdom is the home Member State for the purposes of the transparency obligations directive.

(2) In paragraph (1), “issuer” does not include a person which is not required to comply with the reporting requirements of provisions implementing Articles 4 and 5 of the transparency obligations directive (annual financial reports and half-yearly financial reports) by virtue of—

(a) provisions implementing Article 8(1) of that Directive (exemptions), or

(b) the Transparency Obligations Directive (Disclosure and Transparency Rules) Instrument 2006 made by the Financial Services Authority under the Financial Services and Markets Act 2000 on 21st December 2006.

Appointment in relation to accounts

4. The prescribed body is appointed to exercise the functions mentioned in section 14(2) of the Act only in respect of the periodic accounts and reports required to be produced under Articles 4 and 5 of the transparency obligations directive.

Requirements for prescribed body

5. The prescribed body shall have satisfactory arrangements for recording decisions made in the exercise of the functions it exercises by virtue of its appointment and for the safeguarding of those records which ought to be preserved.