EU audit reform: the impact for insurers

Insurers and reinsurers need to prepare for changes to the audit regime applying from June 2016.  In particular, requirements for the mandatory rotation of auditors will need to be planned for.

Other changes to the current regime are substantial, including tighter restrictions on non-audit services that can be provided by an auditor to an audit client and an overall limit on fees for those services.  Unfortunately, considerable uncertainty remains about how the new legislation will apply in practice, not least because a number of Member State options, which may lead to different regimes applying across the EU, await decisions by national governments.

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