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Decisions taken by the FRC on applications for exemption from cap on non-audit fees (31 January 2026)

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 January 2026 the FRC is reporting on four applications granted.

  1. The FRC granted a waiver to PWC LLP for $697k of reporting accountant work for Diversified Energy Company PLC in support of a re-organisation and secondary listing. This is the second waiver for this company for this financial year
  2. The FRC granted a waiver to PWC LLP for £5.766m of audit work to PCAOB standards for a joint US/UK listing for IG Group Holdings PLC.
  3. The FRC granted a waiver to PWC LLP for £9.8m of audit and assurance work for Wise PLC, in respect of a transfer of its main listing.

Financial Reporting Council

15 February 2026

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 January 2026)
Publication date 06 February 2026
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