Funding
3 minute read
Overview
The FRC funding arrangements for the 2026/27 financial year are set out in our Annual Plan and Budget: 2026-27.
The FRC is funded by the audit profession, who are required to contribute under the provisions of the Companies Act 2006 and, with the agreement with HM Government, by other groups subject to, having regard to, or benefiting from FRC regulation.
Accountancy profession
The accountancy profession’s contribution to the FRC’s annual funding requirement is paid by the Consultative Committee of Accountancy Bodies (CCAB), whose members are ACCA, CAI, CIPFA, ICAEW, and ICAS; and by CIMA which contributes to the FRC’s funding requirement under the terms of a separate agreement with the FRC.
The ICAEW, ICAS, ACCA and CAI are Recognised Supervisory Bodies (RSB) for audit under Schedule 10 of the Companies Act 2006. The FRC, as the audit competent authority, delegates certain audit regulatory tasks to each RSB under a Delegation Agreement. Schedule 10 of the Companies Act 2006 and each Delegation Agreement also places an obligation on a RSB to fund the FRC’s performance of any tasks that have not been delegated where these relate to the regulation of auditors registered with that RSB. This covers the costs of the FRC’s audit review activities, audit enforcement activities and standard-setting procedures.
The activities of the FRC’s Audit Quality Review team are also funded through the National Audit Office and fees levied on Recognised Auditors registered in the Crown Dependencies.
Preparers levy 2026/27
The preparers levy is the annual levy on:
- Companies listed on the London Stock Exchange with a Premium or Standard listing (EF07 & EF08).
- UK companies quoted on AIM and listed on AQUIS.
- Large private entities with a turnover of £500m or more (EF04).
- Global Depository Receipts issuers (EF09).
- Government Departments, local authorities and other public sector organisations.
The amounts payable by individual organisations under the preparers levy are determined through a minimum levy and further amounts for organisations above a certain size, with the rate per £m declining in five levy bands, aligned with the FCA levy arrangements. The amounts charged to individual levy payers are based on their market capitalisation (for listed companies), turnover (for other companies) or annual expenditure (for public sector organisations).
The FCA collect the insurance levy and part of the preparers levy on our behalf. Where we identify a large private entity that is also a subsidiary of a listed company, we ask the FCA to invoice the parent for the share of their subsidiary on the same invoice as EF04. Where more than one subsidiary is identified we calculate the levy on the combined turnover. This has the effect of reducing the levy charge.
Main market companies with a Premium and Standard listing pay the full levy. AIM and AQUIS market group companies and large private entities receive a 50% discount. Public sector organisations receive 75% discount.
The levy for Global Depositary Receipt issuers is a fixed amount, set annually for companies that have designated the UK as their home competent authority and, at a lower rate, for other issuers.
| Name | Preparers Levy 2026-27 |
|---|---|
| Publication date | 18 September 2026 |
| Format | PDF, 234.4 KB. View HTML version |
| Name | Preparers Levy 2026-27 - GDRs |
| Publication date | 18 September 2026 |
| Format | PDF, 178.8 KB. View HTML version |
Insurance levy 2026/27
The insurance levy is charged to insurance companies on the same invoice as the FCA fees. The FRC sets a levy equivalent to a percentage of the fees charged by the FCA and PRA for their fee blocks A3 (insurers – general) and A4 (insurers - life). For 2026/27 the FRC will charge 0.96% of the fees charged by the FCA and PRA for their fee blocks A3 and A4.
| Name | Insurance Levy 2026-27 |
|---|---|
| Publication date | 18 September 2026 |
| Format | PDF, 176.7 KB. View HTML version |
Pension levy 2026/27
The FRC pension levy applies to all Defined Benefit and Defined Contribution schemes with 5,000 members or more at a pension levy rate based on the numbers of members. The levy rate to be applied to individual schemes will be based on latest available data on scheme membership provided by The Pensions Regulator. The rate for 2026/27 is £3.40 per 100 members.
| Name | Pension levy 2026-27 |
|---|---|
| Publication date | 18 September 2026 |
| Format | PDF, 177.5 KB. View HTML version |
Institute and Faculty of Actuaries (IFoA)
When the FRC took on responsibilities for actuarial standards and regulation in April 2006 it was agreed that the IFoA would contribute a share equivalent to 10% of the cost of these actuarial activities.
Third Country Auditors – Periodical fees
A periodical fee is payable on registration as a third country auditor in the UK and annually thereafter while a third country auditor remains on the UK Register of Third Country Auditors.
The level of the fee depends on whether the application is for equivalent, transitional or full registration; and on the number of relevant audit clients.
The fees are intended to cover the Financial Reporting Council’s costs of developing and running the system of registration, other than the costs incurred from the independent inspection of third country auditors.
The applicable fee schedule is set out in Guidance Note TCA2 – Periodical Fees.
Other income
The FRC also generates income from its publications, including from electronic rights. The XBRL project is funded by HMRC, Companies House, the Charity Commission, the Irish Revenue, and the FCA.