§ Mr. MitchellTo ask the President of the Board of Trade what guidelines govern the ethical conduct of the recognised supervisory bodies; and who ensures their compliance with such guidelines.[6468]
§ Mr. Ian McCartneyThere are no specific guidelines on the ethical conduct of the Recognised Supervisory Bodies (RSBs). Complaints about their general conduct are a matter for my right hon. Friend the President of the Board of Trade.
The standards which must be applied by the RSBs in their regulation of those auditors for whom they are responsible are set out in Schedule 11 to the Companies Act 1989. These include standards covering professional integrity and independence, procedures for the investigation of complaints and procedures for discipline. Section 37 of that Act gives my right hon. Friend the President of the Board of Trade the power to require information from RSBs for the exercise of her functions under Part II of the Act. Reports which are received under this section are laid in the Libraries of both Houses of Parliament.