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Third Country Auditors (Fees) Instrument 2021

THE THIRD COUNTRY AUDITORS (FEES) INSTRUMENT 2021

Powers exercised

  1. The Financial Reporting Council (“FRC") makes this instrument in exercise of the power conferred by section 1251(2) of the Companies Act 2006 (“the Act”)1 to make regulations prescribing periodical fees to be paid by, amongst others, every registered third country auditor.
  2. This power was transferred from the Secretary of State to the FRC by Article 7(1) of the Statutory Auditors (Amendment of Companies Act 2006 and Delegation of Functions etc) Order 2012 ("the Delegation Order")2.
  3. This instrument is made by the FRC in accordance with the relevant provisions of the Delegation Order and section 1252 and Schedule 13 to the Act, and with the approval of the Secretary of State.

1. Citation, commencement and interpretation

  1. This instrument may be cited as the Third Country Auditors (Fees) Instrument 2021.
  2. This instrument comes into force on 17 June 2021.
  3. In this instrument:
    • "the 2019 Regulations" means the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 20193.
    • "audit client" means a UK-traded third country company to which a registered third country auditor is appointed as auditor on the relevant date.
    • "equivalent third country" means the countries approved as such under Schedule 1 to the 2019 Regulations, or as otherwise approved by the Secretary of State by Regulations made under section 1240A(1) of the Act.
    • "equivalent registration" means the registration of a third country auditor established in an equivalent third country as a registered third country auditor, in accordance with FRC requirements.
    • "full registration” means the registration of a third country auditor established in a country other than an equivalent third country or a transitional third country as a registered third country auditor, in accordance with FRC requirements.
    • "FRC requirements” means the requirements for registration as a registered third country auditor, as set out in the Statutory Auditors and Third Country Auditors Regulations 20134 and any directions made by the FRC under sections 1239(7) and 1242(4) of the Act5.
    • "registered third country auditor” has the same meaning as in section 1241(1) of the Act.
    • "relevant date" means the date of the registration of a registered third country auditor and each annual recurrence of that date.
    • "third country auditor" has the same meaning as in section 1261(1) of the Act.
    • "transitional registration” means the registration of a third country auditor established in a transitional third country as a registered third country auditor, in accordance with FRC requirements.
    • "transitional third country" means the countries approved as such under Schedule 1 to the 2019 Regulations, or as otherwise approved by the Secretary of State by Regulations made under section 1240A(1) of the Act.
    • "UK-traded third country company" has the same meaning as in section 1241(2) of the Act.

2. Fees payable by registered third country auditors

  1. A registered third country auditor must pay an annual fee to the FRC no later than that auditor's relevant date.
  2. The fee payable is that fee specified in the Schedule to this instrument as appropriate to the nature of that auditor's registration and number of audit clients.

3. Revocation

  1. The Third Country Auditors (Fees) Instrument 2020 is revoked.

By Order of the FRC Board 17 June 2021

SCHEDULE

Annual fee payable by a registered third country auditor

Number of audit clients Equivalent registration Transitional registration Full registration
0 - 9 £1,221 £2,357
10+ £2,925 £5,765

  1. 2006 c. 46 ↩

  2. S.I. 2012/1741. ↩

  3. S.I. 2019/177. ↩

  4. S.I. 2013/1672 ↩

  5. As amended by the Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649) and the Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/177). ↩

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Name Third Country Auditors (Fees) Instrument 2021
Publication date 27 September 2023
Format PDF, 77.0 KB
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