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Decisions taken by the FRC on applications for exemption from cap on non-audit fees (31 October 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 31 October 2025 the FRC is reporting on one application granted.

1The FRC granted a waiver to GT LLP for an additional £20,000 of grant certification work for Coventry City Council, in light of the local audit backstop, supplementing the amount for which a waiver was approved in early 2025.

Financial Reporting Council 15 November 2025

13th Floor, 1 Harbour Exchange Square, London E14 9GE 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 (31 October 2025)
Publication date 11 November 2025
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