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FCA reminder to auditors of whistleblowing duties

The FCA has published an open letter from Christopher Woolard, Interim Chief Executive, to senior partners and directors of audit firms to remind auditors of their duty to report, without delay, directly to the FCA.  It highlights that:

“In the current financial climate, it is vitally important that auditors are mindful of their reporting duties in relation to significant matters arising, for instance under SUP3 of the FCA Handbook, sections 342(5) and 343(5) of Financial Services and Markets Act 2000 and UK auditing standards.

The auditor of a financial institution or a company with transferable securities admitted to trading on a regulated market that is subject to statutory regulation has a ‘duty to report’ certain information to the regulator, relevant to the regulator’s functions, which comes to the auditor’s attention during their work.

You should send these reports to us at auditorsdutytoreport@fca.org.uk.

While FCA supervisors regularly engage with auditors, we remind auditors that this duty to inform becomes binding as soon as uncertainties arise.  The duty covers areas such as when an entity is likely to be unable to continue as a going concern.  For the avoidance of doubt, we expect auditors to raise such issues with us proactively and without delay.”

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