The Financial Reporting Council (FRC) is planning to increase fees for third country auditors by 10% a year
The proposals set out in this consultation, together with those set out in the FRC’s annual, project and budget consultation, will impact most directly on: i) third country auditors; ii) the larger UK audit firms who audit other companies on the UK’s regulated markets; and iii) the companies listed on UK regulated markets.
UK law requires the registration and regulation of auditors that audit the accounts of companies from third countries issuing securities on regulated markets in the UK, known as third country auditors.
In order to fund the FRC’s work in undertaking equivalence reports, the annual third country auditor registration fees for TCA audit firms will increase by £85 per year, equivalent to 10% a year. The remaining costs of this work will be borne equally by the CCAB and the Preparers levy.
For businesses auditing nine or fewer clients the full registration fee will be £2,357 for full registration and for auditors of more than 10 businesses, £5,765.
The policy behind the third country auditors’ regime is to ensure that appropriate and consistent standards are being applied (together with monitoring where necessary and a register) for overseas auditors who are providing audit opinions on overseas companies listed on the main UK exchange, as their audit opinions are being relied on by UK investors.
This consultation seeks views on the proposed Third Country Auditors (Fees) Instrument 2021, which includes an increase in the periodical fees for registered Third Country Auditors in the UK.
The consultation closes for comment on 15 March 2021.
FRC consultation, Third Country Auditors (Fees) Instrument 2021