Due to the Financial Reporting Council (FRC) receiving no response on its consultation on plans to increase registration and annual renewal fees for third country auditors, the regulator has decided to put the 2018 Instrument into effect from 29 May 2018
The FRC issued a public consultation on 10 April 2018 seeking feedback on the 2018 Instrument. Specifically:
- If the 2018 Instrument is clear and understandable.
- If there is anything missing from the 2018 Instrument that would improve its effectiveness.
- Any other comments on the 2018 Instrument.
As no response was received the 2018 Instrument, which updates legislation and other references which were previously out of date, will come into force on 29 May 2018.
The FRC has also introduced a new fees schedule with increased registration and renewal fees.
The FRC’s fees are based on the costs to administer the third country auditors regime and are determined by the estimated cost of processing applications for registration and renewal of registration.
The third country auditors regime exists to establish a level of oversight similar to that required of the audits of listed companies incorporated within the EU. This is intended to enhance and safeguard public confidence in the financial statements of companies listed on EU-regulated markets and audited by third country auditors.
The FRC new fees are as follows:
Number of audit clients | Type of registration | ||
Equivalent registration | Transitional registration | Full registration | |
0-9 | £1,136 | £2,272 | |
10+ | £2,840 | £5,680 | |
Feedback Statement Third Country Auditors (Fees) Instrument 2018 is here.
Report by Amy Austin
