The European Commission allocates a transitional period to third countries when it considers the system of supervision and enforcement not yet equivalent to the systems of the EU Member States, but expects this will happen in the near future.
For the following countries, the European Commission has allocated a transitional period for financial years beginning between 2 July 2010 and 31 July 2015:
- Cayman Islands
- New Zealand
Audit entities with audit clients in the third countries mentioned above can perform their audit activities on the basis of a registration under the transitional period. Full registration is required for audit clients in other third countries.
Audit entities with both audit clients in third countries for which full registration is required and audit clients in third countries for which a registration under the transitional period is required must apply for full registration.