Auditor Provisions in Credit Agreements
23 October 2013
The Competition Commission (CC) has been conducting a market investigation into statutory audit services and has been reviewing clauses in loan agreements relating to the appointment of auditors. The CC has now issued its final report and one of its package of remedies is a ban on provisions in loan agreements limiting auditor choice (although the CC has back-tracked somewhat from what it originally proposed). However, loan agreements in effect at the date of the relevant Order (expected by 1 October 2014) will be exempt and so there is no immediate need to change credit agreements.