17/10/06

EASING THE BURDEN ON SMALL FINANCIAL SERVICES COMPANIES

Many more small financial services companies will soon be able to take advantage of the option not to have their account audited, and of other small company accounting and reporting simplifications, as a result of changes to the Companies Act 1985.

The Companies Act 1985 (Small Companies’ Accounts and Audit) Regulations 2006 mean that certain categories of small financial services companies and limited liability partnerships will be able to benefit from the small company accounting and auditing exemptions in the Companies Act. Previously, they would have been prohibited from taking advantage of the exemptions because they carried on activities that were regulated by the Financial Services Authority. The changes apply for financial years ending on or after 31 December 2006.

For information on the changes, guidance is available on the following BERR web page: http://www.dti.gov.uk/bbf/financial-reporting/small-companies/page23516.html.