FRC launches consultation on changes to Third Country Auditors (Fees) Instrument
Released 10 January 2019
The Financial Reporting Council (FRC) has launched a consultation to seek views on the Third Country Auditors (Fees) Instrument 2019.
The regulatory regime governing Third Country Auditors (TCA) is changing because of the UK leaving the EU. If there is no withdrawal agreement between the UK and the EU providing for an implementation period, the UK will apply the TCA regime to non-UK auditors that audit the accounts of companies from outside the UK that issue certain securities on a UK regulated market.
Companies Act 2006, s. 1251 provides the Secretary of State with a power to make regulations that require registered TCAs to pay periodical fees. This power has been delegated to the FRC and was most recently exercised by the Third Country Auditors (Fees) Instrument 2018. The Instrument needs to be updated to reflect the legislative changes.
According to the FRC’s calculations and estimates on the expected levels of work going forward, it has been decided not to change the level of fees required to be point at this time.
The FRC is seeking stakeholder opinion on this position and any other comments regarding the drafting of the Instrument. The consultation runs until 7 February 2019.
View the consultation document.