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Registration Protocol (October 2024)

FRC Registration Protocol (amended on 1 October 2024)

Preamble

1The FRC will undertake the application of the Eligibility Criteria for the purposes of determining whether persons are eligible for appointment as statutory auditors of Public Interest Entities (‘PIE’) (within the meaning given to the term "public interest entity" in SATCAR 2016) and may otherwise be registered as statutory auditors of such PIEs ("the PIE Auditor Registration Tasks").

Provision of information

2For the purposes of supporting the FRC's operation of the PIE Auditor Registration Tasks, an RSB will, where it is referring an audit monitoring report, or any other relevant report, for any firm or Responsible Individual ('RI') on the PIE Auditor Register ('PAR') to its Committee provide the FRC with a copy of:

  1. The report on the earlier of:
    1. the date that it notifies the relevant firm/RI of the referral; and
    2. the point at which the report is ready to be submitted to the Committee; and
  2. The outcome of the referral on the date that it notifies the relevant firm/RI of the outcome.

If an RSB decides to close an audit monitoring report, or any other relevant report, without referral to its Committee, the RSB will, within 10 working days of the report being closed, provide the FRC with a copy of the report.

For the purposes of this Registration Protocol, 'any other relevant report' shall include reports arising out of matters raised internally within the RSB which may appear relevant to the FRC's consideration of the firm's or RI's registration, or application for registration, on the PAR as established under the Financial Reporting Council Public Interest Entity (PIE) Auditor Regulations ('the Regulations').

Any request by the FRC for further information arising out of any matter reported above shall be responded to by the RSB within 10 working days (unless the FRC agrees a longer period) of the FRC requesting such information.

3For the purposes of supporting the FRC in the operation of the PIE Auditor Registration Tasks, an RSB will provide the following:

  1. Confirmation (within 10 working days of an RSB becoming aware of the information) of information about a firm or RI currently eligible for inclusion on the Register of Statutory Auditors that:
    1. concerns a request by the firm or RI to withdraw voluntarily from the Register of Statutory Auditors;
    2. indicates that the firm or RI may currently be ineligible for inclusion on the Register of Statutory Auditors; and/or
    3. appears relevant to the FRC's consideration of the firm's or RI's registration, or application for registration, on the PAR as established under Regulations;

    Any request by the FRC for further information arising out of any matter reported above shall be responded to by the RSB within 10 working days (unless the FRC agrees a longer period) of the FRC requesting such information;

  2. The most recent audit monitoring report of a firm, which is applying to be registered on the PAR, and/or any outcome of a referral of that report to the RSB's Committee, within 10 working days (unless the FRC agrees a longer period) of the FRC requesting such report and/or outcome;
  3. Information on ongoing and completed regulatory and disciplinary matters which relate to or could affect the firm's or RI's inclusion on the Register of Statutory Auditors:
    1. within 10 working days (unless the FRC agrees a longer period) of the FRC requesting such information; and
    2. in the event of an RSB notifying a firm that it is, or an RI that they are, under formal investigation by the RSB, within 10 working days of that information being communicated to the firm or RI;
  4. Confirmation of any urgent orders, undertakings, conditions, restrictions, suspensions or withdrawals which are relevant to a firm or RI registered on or applying to be registered on the PAR within 10 working days (unless the FRC agrees a longer period) on the earlier of:
    1. the FRC requesting such confirmation; and
    2. the relevant sanction coming into effect;
  5. Notification of:
    1. a recommendation to its Committee to impose urgent orders, undertakings, conditions, restrictions, suspension or withdrawal on a firm or RI who is or is applying to be registered on the PAR on the earlier of:
      1. the date that it notifies the firm or RI of the recommendation; and
      2. the point at which the recommendation is ready to be submitted to its Committee;
    2. the outcome of such a recommendation on the date that it notifies the relevant firm or RI of the outcome;
  6. In respect of a firm's registration, or application for registration, on the PAR, such details from that firm's RSB annual return as the FRC may request within 10 working days (unless the FRC agrees a longer period) of the FRC's request;
  7. Confirmation, within 10 working days (unless the FRC agrees a longer period) of the FRC requesting such confirmation, that all RSB registration fees due to be paid by a firm or RI have been paid to the RSB;
  8. Confirmation (within 10 working days of the RSB agreeing to make any changes to the details on the Register of Statutory Auditors of a firm or RI who is also on the PAR) of the details of the change(s) made (or to be made) to the Register of Statutory Auditors in respect of that firm or RI (including, but not limited to, change of name for a firm, change of name for an RI, change of address for a firm);
  9. Confirmation of cessation of registration on the Register of Statutory Auditors of a firm or RI who is also on the PAR within 10 working days of the date that the RSB confirms the cessation;
  10. Confirmation of cessation of RSB membership of an RI who is also on the PAR within 10 working days of the date that the RSB confirms the cessation;
  11. Confirmation of any change of ownership and/or governance arrangements which may be relevant to a firm registered on, or applying to be registered on, the PAR within 10 working days of the RSB's registration/authorisation team becoming aware a) of such a change having taken place, or b) of such a change being proposed, whichever is sooner.

Co-operation between the FRC and RSBs

4For the purposes of the FRC operating the PIE Auditor Registration Tasks the FRC and each RSB agree:

  1. The FRC may take regulatory action in relation to a firm or RI on the PAR (impose urgent decisions, conditions, agree undertakings or a waiver, suspend or remove registration) in accordance with the Regulations;
  2. The FRC will be responsible for the monitoring of compliance with any undertakings, waivers, conditions and/or suspensions arising from the Regulations, and will at all times be responsible for varying or ending these;
  3. The FRC will notify the relevant RSB of any Formal Notifications or Registration Notices that it issues to a PIE Registered Audit Firm or PIE Registered RI on a monthly basis, unless agreed otherwise. For the avoidance of doubt, the 'relevant RSB' is the RSB with which the relevant PIE Registered Audit Firm or PIE Registered RI is registered (and of which an RI is a member, if this is a different RSB). The FRC shall provide a copy of the Formal Notification or Registration Notice within 10 working days of a copy being requested by the relevant RSB (unless a longer period is agreed);
  4. Where the FRC has imposed conditions or agreed undertakings under the Regulations it expects that the RSB's Committee will have regard to these when considering the firm's or RI's ongoing suitability to remain on the Register of Statutory Auditors and that, if the Committee is considering imposing further measures, it will seek to:
    1. avoid duplicating measures;
    2. ensure measures are proportionate;
    3. ensure that any additional measures do not conflict with existing measures;
    4. ensure that it is clear to the affected firm or RI whether compliance reporting is to be directed to the FRC or the RSB so as to minimise duplication;
  5. The FRC will notify the relevant RSB of any information relating to any change of ownership and/or governance arrangements for a firm registered, or applying to be registered, on the PAR which may be relevant to that firm's eligibility to be a registered auditor within 10 working days of the FRC becoming aware a) of such a change having taken place, or b) of such a change being proposed, whichever is sooner.

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Name Registration Protocol (October 2024)
Publication date 30 September 2024
Format PDF, 68.8 KB
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