Transfer of an audit firm to another legal entity

However, a licence may transfer to a successor legal entity by operation of law if it can be acquired by universal title. Acquisition by universal title can occur in the event of a legal merger or demerger, for instance. You must notify the AFM without delay upon effecting any such change of legal structure via vergunningen_wta@afm.nl.

If the licence is not acquired under universal title and would therefore terminate upon the audit firm ceasing to exist, a licence can be applied for in the name of the new legal form at a reduced rate, provided that the change to the audit firm’s legal structure results in only a simple change in legal form. A change qualifies as a simple change in legal form when the licensed legal entity is transferred to a different legal form and the audit firm’s organisational structure, working methods and activities remain unchanged. If these conditions are met, the AFM will grant a licence to the new legal form.

If a new licence is required for the new legal entity, you must apply for this licence in plenty of time before your firm is transferred to the new legal entity. This way, you prevent a situation where the new legal entity is not allowed to perform statutory audits because it does not yet have a licence.

Therefore, if there will be a change to your audit firm’s legal structure, you must notify the AFM as soon as possible, attaching supporting documents, via vergunningen_wta@afm.nl. The documents should at least cover your firm’s organisational structure, working methods and activities.