Warning

The content on this page has been converted from PDF to HTML format using an artificial intelligence (AI) tool as part of our ongoing efforts to improve accessibility and usability of our publications. Note:

  • No human verification has been conducted of the converted content.
  • While we strive for accuracy errors or omissions may exist.
  • This content is provided for informational purposes only and should not be relied upon as a definitive or authoritative source.
  • For the official and verified version of the publication, refer to the original PDF document.

If you identify any inaccuracies or have concerns about the content, please contact us at [email protected].

Decisions-taken-by-the-FRC-Non-Audit-Services-31-July-2021

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 July 2021 the FRC is reporting on four applications granted. Those marked ** relate to previous reporting periods in which the application could not be reported as the transaction or service it relates to was price sensitive at that time.

  1. The FRC granted an extension to a waiver granted last quarter to BDO LLP in respect of an additional £0.32-0.375 million of work involving SEC filings, the provision of comfort letters and the review of a US prospectus supplement for Gamesys Group plc, in response to a proposed takeover by a NYSE-listed company.
  2. The FRC granted a waiver to EY LLP in respect of £0.433-0.522 million of reporting accountant work for Nostrum Oil & Gas PLC to support a proposed Class 1 Circular and issuance of ordinary shares by the company.
  3. The FRC granted a waiver to PWC LLP in respect of £0.05 million of reporting accountant work for Polar Capital Global Financials Trust PLC to support a proposed issue of equity securities and the proposed admission of those securities to the LSE.

Financial Reporting Council 15 August 2021

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.

File

Name Decisions-taken-by-the-FRC-Non-Audit-Services-31-July-2021
Publication date 27 September 2023
Format PDF, 10.0 KB
Download original
Back to top