2.—(1) A person is ineligible for appointment as auditor of an investment company with variable capital if he is—
(a)an officer or employee of the company; or
(b)a partner or employee of such a person, or a partnership of which such a person is a partner.
(2) For the purposes of sub-paragraph (1) above, an auditor of a company shall not be regarded as an officer or employee of the company.
(3) The power of the Secretary of State to make regulations under section 27 of the Companies Act 1989 (ineligibility on ground of lack of independence) in relation to the appointment of company auditors shall be exercisable in relation to the appointment of auditors of investment companies with variable capital—
(a)for like purposes; and
(b)subject to the same conditions.
(4) Any reference in this paragraph to an officer of an investment company with variable capital shall include a reference to a shadow director of such a company.