Third Country Auditor Registration Consultation on proposed amendments to the FRC’s policy
Published: 16 February 2026
Response deadline: 27 March 2026
| Title | Third Country Auditor Registration Consultation |
|---|---|
| Format | pdf, 277.4 KB. View HTML version |
The Financial Reporting Council (FRC) is consulting on a temporary amendment to its Third Country Auditor (TCA) policy. The proposed change would temporarily permit auditors of Chinese-registered entities listing Global Depositary Receipts (GDRs) in London to use Chinese Standards on Auditing (CSAs) for UK listing purposes, supporting the flow of capital, enabling investment and growth.
This consultation follows a request from the UK Government which is seeking to address a perceived barrier discouraging some Chinese-registered issuers from choosing the UK as a listing venue. Allowing the use of CSAs on a temporary basis aims to encourage eligible Chinese registered entities to list on the London Stock Exchange through the Shanghai/Shenzhen Stock Connect agreement between the Financial Conduct Authority and the China Securities Regulatory Commission.
The proposed amendment is intended to support a shared wider Government objective of boosting UK economic growth and strengthening London’s global market competitiveness, while ensuring that appropriate safeguards remain in place.
The proposed change is narrowly scoped, time‑limited and includes safeguards designed to uphold investor protection and market integrity, pending a longer-term legislative solution:
- Time‑limited and clearly scoped
- Accompanied by safeguards, including transparency requirements, continued TCA registration and ongoing supervision
- Clear disclosures stating the applicable auditing standards that have been used.
- Auditors of entities listed on Stock Connect would be required to register with the FRC as TCAs; remain subject to ongoing supervision .
- It applies only to entities listed in the clearly identifiable Stock Connect segment of the LSE International Order Book and does not affect other China-registered issuers nor alter the wider TCA regime.
The FRC is seeking views on whether this approach appropriately balances the UK’s commitment to investor protection and audit quality with the strategic objective of supporting economic growth and strengthening London’s global market competitiveness.
The consultation is open for feedback until 27 March 2026.