The material Regulations of the Companies (Amendment No. 4) (Jersey) Regulations 2009 came into force on 5 April, replacing Part 16 of the Companies (Jersey) Law 1991 (which deals with accounts and the auditing of accounts) in order to establish an auditor oversight regime meeting the equivalency requirements of the European Union's Statutory Audit Directive. In particular, the new Part 16 requires companies with shares traded on European Union stock markets to have their accounts audited by auditors who are bound by the relevant rules of certain recognized professional bodies.
Three pieces of subordinate legislation also came into force on 5 April, setting out the detail of the new oversight regime. The Companies (Audit) (Jersey) Order 2010 provides for the Jersey Financial Services Commission to maintain a Register of Recognized Auditors and prescribes the information to be held in this register. The Order also sets out what must be contained in the "Audit Rules" governing the conduct of recognized auditors and establishes independence requirements which must be satisfied by all auditors. The Companies (GAAP) (Jersey) Order 2010 prescribes which 'generally accepted accounting principles' ("GAAP") a market traded company may use when preparing its accounts, and the Companies (Professional Oversight Board) (Jersey) Order 2010 provides the UK's Professional Oversight Board with the statutory powers needed to fulfil the role of independent oversight body.