Collective Investment Vehicles and Pension Funds - Auditor Independence

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
BOARD ADVISOR
IESBA March 2025 Meeting Highlights

The IESBA considered and approved a Consultation Paper (CP) on CIVs and Pension Funds. The CP will seek further views and insights from stakeholders regarding the application of the Code in addressing auditor independence considerations with respect to certain third parties that perform functions or services for these types of investment vehicles and which are not covered by the Code’s definition of a related entity. The CP is expected to be issued by the end of March 2025 with a public comment period of 90 days.

The IESBA will consider an analysis of respondents’ comments on the CP and the Project Team’s preliminary report and recommendations for the way forward at the September 2025 IESBA meeting.

Project Stages