It is unlikely that all firms will take advantage of the FSA's regulation regarding small firms audit requirements, according to accountants CLB Littlejohn Frazer.
The FSA announced on Friday that it is consulting on ending audit requirements for small firms, which will benefit many financial intermediaries - particularly financial advisers.
John Needham from the specialist Financial Services Industry practice at accountants CLB Littlejohn Frazer, said: "The DTI changed the audit exemption rules regarding insurance intermediaries firms in September 2005. Broking firms have continued to require our services and many have decided to continue with the audit given that much of the work is required for other purposes.
"On top of that, the market is very active with brokers buying, selling and raising funds. The activities tend to require audited accounts to be available for the different parties involved.
"If parallels can be drawn then it is unlikely that all of the 3,200 small firms and 1,490 Appointed Representatives mentioned in the FSA's statement will take advantage of the proposed exemption. Firms may now have more of an appetite for the benefits of audits as a result of operating in the regulated environment."
