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Decisions taken by the FRC on applications for exemption from cap on non-audit fees (30 April 2025)

DECISIONS TAKEN BY THE FRC ON APPLICATIONS FOR EXEMPTION FROM CAP ON NON-AUDIT FEES

Regulation 13 of the Statutory Auditors and Third Country Auditors Regulations 2016 and Article 4(2) of the EU Audit Regulation (EU 537/2014) provide that the Competent Authority may, upon a request by the statutory auditor or the audit firm ('the applicant'), and on an exceptional basis, allow an exemption from the 70 per cent cap on fees for non-audit services for a period not exceeding two financial years.

In the UK, for the audit of a public interest entity, the cap will not apply until the fourth financial period commencing on or after 17 June 2016. For applications received, the FRC has committed to publishing those decisions in full, except where that would risk harming the commercial interests of an applicant. In those cases, the decision will be published in abridged form.

In the quarter ending 30 April 2025 the FRC is reporting on three applications granted.

  1. The FRC granted a one year waiver to KPMG LLP for EUR 4.1m of reporting accountant work for Unilever Plc, in relation to a demerger and subsequent listing.
  2. The FRC granted a waiver to EY LLP for £333,900 of reporting accountant work for Pershing Square Holdings, Ltd, in relation to a US debt issuance and admission of securities to a public debt market.
  3. The FRC granted a waiver to PWC LLP for $488,000 of reporting accountant work for Diversified Energy Company PLC, in relation to an acquisition.

Financial Reporting Council

15 May 2025

8th Floor, 125 London Wall, London EC2Y 5AS Tel: +44 (0)20 7492 2300 Fax: +44 (0)20 7492 2301 www.frc.org.uk The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered office: as above.

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Name Decisions taken by the FRC on applications for exemption from cap on non-audit fees (30 April 2025)
Publication date 12 May 2025
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