ICMA publishes response to BEIS consultation on reforming audit rules

Article summary

The International Capital Market Association (ICMA) has published its response to the Department of Business, Energy & Industrial Strategy’s consultation on restoring trust in audit and corporate governance. ICMA has said it welcomes the consultation but has warned that new bond issues could see higher transactions diligence costs if legislation was enacted that would prevent audit firms from using their ring-fenced audit team for comfort letter work. However, ICMA has also acknowledged that this does not appear to be a consideration in the current proposals but has said that it should be taken into account for any subsidiary rules.