(b) provisional approval to a third country competent authority as an approved third country competent authority; 

by relevant regulations. 

(2) In this Chapter, “relevant regulations” means regulations under section 1240B(1) of the Companies Act 2006 made by the Secretary of State. 

## Definition of when a third country competent authority is adequate in relation to exchange of papers and reports 

11.  For the purposes of these Regulations, a third country competent authority is adequate, in relation to the authority’s ability to co-operate with the competent authority on the exchange of audit working papers and investigation reports, if provisions with content comparable to that of sections 1224A( a ), 1224B( b ) and 1253A to 1253C( c ) of, and Schedule 11A( d ) to, the Companies Act 2006, or provisions which are expected to achieve comparable outcomes, apply in the country of that competent authority. 

## Power of Secretary of State to take into account a report from the competent authority 

12. —(1) Before granting approval or provisional approval to a third country competent authority by relevant regulations, the Secretary of State may take into account a report prepared by the competent authority that assesses the extent to which the third country competent authority is adequate in relation to that authority’s ability to co-operate with the competent authority on the exchange of audit working papers and investigation reports. 

(2) The report of the competent authority may take account of any assessments of the third country competent authority carried out by or on behalf of an equivalent third country or a transitional third country. 

## Conditions for grant of approval 

13. —(1) The Secretary of State may not grant to a third country competent authority— 

(a) approval as an approved third country competent authority unless the Secretary of State is satisfied that condition A is met; or 

(b) provisional approval as an approved third country competent authority unless the Secretary of State is satisfied that condition B is met. 

(2) Condition A is that the third country competent authority is adequate in relation to its ability to co-operate with the competent authority on the exchange of audit working papers and investigation reports. 

(3) Condition B is that it is likely that— 

(a) the third country competent authority is adequate in relation to its ability to co-operate with the competent authority on the exchange of audit working papers and investigation reports; and 

(b) that adequacy can reasonably be expected to have been established before the end of the period of provisional approval. 

