CIVs, Pension Funds and Investment Company Complexes

Objective

The objectives of the project team are to:

  1. Review CIVs and pension fund arrangements and their relationships with trustees, managers and advisors to gain a comprehensive understanding of these arrangements to ensure that the independence provisions and the application of the “related entity” definition in the International Independence Standards in Part 4A of the Code remain fit for purpose;
  2. Review investment company complexes and consider whether the Code should be enhanced to address these structures, such as establishing new terms and definitions, and clarifying which entities or arrangements within such a complex should be considered as related entities of an audit client; and
  3. Develop a report and recommendations to the IESBA.
PROJECT TEAM
IESBA September 2024 Meeting Highlights

The IESBA considered an update from the Project Team on its activities with respect to CIVs, pension funds and ICCs since the June 2024 Board meeting. The IESBA also considered a presentation on the practical application of the extant Code to audits of CIVs.

The IESBA deliberated the potential gaps in the Code regarding audits of CIVs and the way forward, which includes developing a consultation paper to seek further views and insights from stakeholders regarding the application of the Code in addressing independence with respect to third parties not covered by the Code’s definition of related party.

The IESBA will consider the draft consultation paper at its March 2025 meeting.

Project Stages