Information for professionals
  • Print this page
  • download icon
  • Send to a friend

ProfessionalsInformation forAudit firmsRegistration of third country audit entriesRegistration

 

Registration

From 28 June 2008, third-country audit entities (i.e., audit entities that carry out audits of the annual or consolidated accounts of companies incorporated in a third country) need to be registered with the AFM in order to provide audit reports concerning the annual or consolidated accounts of a company incorporated outside the European Union and the European Economic Area whose transferable securities are admitted to trading on a regulated market in the Netherlands. The European Commission has published on its website a list of markets that qualify as ‘regulated markets’.

Without registration, the provided audit reports shall have no legal effect in the Netherlands.
No registration is required with regard to audit reports concerning the annual or consolidated accounts of a company that is an issuer exclusively of debt securities admitted to trading on a regulated market in the Netherlands the denomination per unit of which is at least EUR 50 000 or, in case of debt securities denominated in another currency, equivalent, at the date of issue, to at least EUR 50 000. Audit firms that hold a licence from the AFM don’t need to apply for registration either.

When to apply?
In general, third-country audit entities need to apply for registration with the AFM at least twelve months before they intend to provide an audit report concerning the annual or consolidated accounts of a company incorporated outside the European Union and the European Economic Area whose transferable securities are admitted to trading on a regulated market in the Netherlands to ensure that the application is approved by the AFM before they actually provide such audit reports. The provided audit reports will have legal effect in the Netherlands after the AFM has approved the application for registration. The AFM will generally decide upon an application for registration within twelve months.

Under the following conditions the audit reports provided by third-country audit entities will have legal effect in the Netherlands already before the AFM has decided upon the application for registration:

  • the third-country audit entity audits only the annual or consolidated accounts of companies whose home country is one of the third countries to which the European Commission has granted a transitional period, i.e., Argentina, Australia, Bahamas, Bermudas, Brazil, Canada, Cayman Islands, Chile, China, Croatia, Guernsey, Jersey, Isle of Man, Hong Kong, India, Indonesia, Israel, Japan, Kazakhstan, Malaysia, Mauritius, Mexico, Morocco, New Zealand, Pakistan, Russia, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, and United States of America, and the third-country audit entity has provided the AFM with all required information for registration before providing any audit report concerning annual or consolidated accounts for financial years starting during the period from 29 June 2008 to 1 July 2010 (more information is included in the Commission Decision of 29 July 2008 concerning a transitional period for audit activities of certain third auditors and audit entities (OJ L 202/70), which can be found under Laws and regulation);
  • the third-country audit entity audits the annual or consolidated accounts of companies whose home country is not one of the third countries to which the European Commission has granted a transitional period and the third-country audit entity has applied for registration with the AFM before 28 July 2008.

How to apply?
To apply for registration, third-country audit entities must complete and submit the following forms, including all applicable annexes indicated in the forms:

  • Form H: applicable if the audit client is not located in one of the third countries to which the European Commission has granted a transitional period and the third-country audit entity applies for registration after 28 July 2008. This form should be downloaded from this website, filled in electronically, and sent to the AFM via e-mail and by post;
  • Form I: applicable if the audit client is located in one of the third countries to which the European Commission has granted a transitional period. Registration starts as from 1 October 2008. This form should be downloaded from this website, filled in electronically, and sent to the AFM via e-mail and by post;
  • Prospective appointment notification form: for each (co-)policymaker* to be completed by the third-country audit entity. This form should be downloaded from this website, filled in manually, and sent to the AFM by post;
  • Integrity test form: to be completed by each (co-)policymaker*. This form should be downloaded from this website, filled in manually, and sent to the AFM by post.
    * (Co-)policymakers are those persons within the third-country audit entity that are members of the administrative or management body or otherwise determining or influencing the day-to-day policies of the audit entity. More information about the definition of (co-)policymaker is included in the FAQ-document.
Updating registration information
Applicants shall notify the AFM without undue delay of any change of information contained in the application form and its annexes. This can be done by completing the update form and sending it to the AFM. Applicants that have submitted Form G or H must use update Form U1 and applicants that have submitted Form I must use update Form U2.

Registration fees
The AFM charges costs for processing the application for registration as a third country audit entity. These registration fees have been determined by ministerial order [“Regeling toezichtskosten Wet toezicht accountantsorganisaties”]. The registration fees for application for registration as a third-country audit entity will be due in two terms:

  1. A registration fee for the receipt and initial processing of the application for registration as a third country audit entity. This registration fee amounts to € 850 and will be invoiced upon receipt of the application for registration by the AFM.
  2. A registration fee for the assessment of the application for registration as a third country audit entity. This registration fee amounts to € 3.650 and will be invoiced when the AFM commences with the assessment of the application for registration as a third-country audit entity.

Furthermore, a fee is due per integrity test that is performed for each of the applicant’s (co-) policymakers. This fee amounts to € 800 per integrity test and will be invoiced in the second term.