An auditor (individual or firm) must register with the FRC if it provides an audit report concerning the annual or consolidated accounts of a company incorporated outside the EU whose transferable securities, within the meaning of Article 4 (1) (18) of EU Directive 2004/39/EC, are admitted to trading on a regulated market, within the meaning of Article 4 (1) (14) of EU Directive 2004/39/EC, in the UK.
However, registration is not required if one of the following apply:
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The company is an issuer exclusively of debt securities, within the meaning of Article 2 (1) (b) of EU Directive 2004/109/EC, admitted to trading on or before to 31 December 2010, the denomination of which is at least €50,000 per unit or, in the case of debt securities denominated in another currency, equivalent, at the date of issue, to at least €50,000; or
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The company is an issuer exclusively of debt securities, within the meaning of Article 2 (1) (b) of EU Directive 2004/109/EC, admitted to trading after 31 December 2010, the denomination of which is at least €100,000 per unit or, in the case of debt securities denominated in another currency, equivalent, at the date of issue, to at least €100,000.
Pursuant to Article 45 (4) of EU Directive 2006/43/EC, an audit report of a relevant issuer that is signed by an auditor that is not registered with the FRC as a third country auditor has no legal effect in the UK.
The registration requirements differ depending on where the auditor is located. No registration is required under the current legal framework in the UK if the auditor is a registered auditor in the UK or is approved in accordance with the Statutory Audit Directive (as amended) by an EU Competent Authority to carry out audits of annual accounts or consolidated accounts required by EU law.
Further information can be found on the Third Country Auditors section of the FRC website.