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 September 2025 Meeting Highlights

The IESBA considered a preliminary analysis of the key themes identified in responses to the March 2025 consultation paper on Collective Investment Vehicles and Pension Funds – Auditor Independence. The IESBA noted wide differences of opinion among respondents, even within individual stakeholder groups, on some of the matters raised in the consultation paper.

Some IESBA members felt that further work was not justified in light of the overall picture presented by the preliminary analysis. However, the majority of IESBA members supported the Project Team undertaking further analysis of the issues and arguments presented by respondents in order to establish a sound basis for the IESBA to determine the way forward in the public interest, taking into account the Project Team’s recommendations.

The Project Team will present its final report and recommendations for the IESBA’s consideration at its December 2025 meeting.

Project Stages