§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what proposals he has to bring forward legislation to extend to company auditors duty of disclosure of confidential complaints and concerns to the regulatory authorities.
§ Mr. RedwoodI must ask the hon. Member to await the Government's response, which my right hon. Friend hopes to announce soon, to a recommendation on this topic made by the Select Committee on Trade and Industry in its report on company investigations.
§ Mr. CousinsTo ask the Secretary of State for Trade and Industry whether he is reviewing his powers to take action against auditors criticised in Companies Act inspectors' reports; and if he will make a statement.
§ Mr. RedwoodNo review is being undertaken. Under part II of the Companies Act 1989—the key provisions of which we expect to bring into force in early 1991—a recognised supervisory body must appear to the Secretary of State to have both adequate rules and practices designed to ensure that company auditors are fit and proper persons; and adequate arrangements and resources for the effective monitoring and enforcement of compliance with its rules.