FRC strengthens oversight of PIE audit firm restructuring

News types: Publications

Published: 31 March 2026

The FRC has today published updated Public Interest Entity (PIE) Auditor Registration Regulations (Regulations) and accompanying guidance in respect of its PIE Auditor Register (PAR), strengthening its oversight of audit firm restructuring and reducing, where possible, administrative burdens on PAR-registered audit firms.

The updates maintain the PAR’s important role in supporting market confidence, facilitating constructive and supportive engagement between the FRC and audit firms, and protecting the public interest.

Since its creation in December 2022, the PAR has acted as a mitigation against the risk of poor audit quality affecting investors and the public. The audit market has changed significantly since then, with a sharp increase in restructuring transactions and private capital investment involving audit firms.

Where previously PAR-registered firms could notify the FRC up to ten working days after governance or ownership changes had already completed, they will now be required to notify the FRC as early as reasonably possible ahead of any such planned changes; including as part of a restructuring or private capital investment. This change aims to provide the FRC with the necessary time to consider how structural changes may affect a firm’s compliance with the requirements of the Regulations before they take effect - and to act decisively in the public interest if needed.

Alongside this key change, the updated Regulations provide for:

• a simplified re-registration process for Responsible Individuals previously registered on the PAR;
• a new exemption mechanism for firms seeking to conduct an audit of an entity which was not a PIE on the relevant accounting reference date;
• more flexible annual return and audit portfolio submission timescales; and
• clearer processes around conditions, undertakings, waivers, suspensions, and appeals. All four of the UK’s recognised supervisory bodies for audit, twenty-seven PAR-registered audit firms and one other organisation engaged with the FRC’s consultation.

"The audit market is changing, with increasing restructuring activity and private capital investment across the sector. These updated regulations seek to ensure that the FRC has the visibility it needs to help drive improvements in audit quality, during periods of significant change, while also responding to the sector's call for greater flexibility and reduced administrative burden. We are grateful to all those who engaged with the consultation process and whose feedback has shaped the final regulations."

Anthony Barrett, Executive Director of Supervision
Read the Public Interest Entity (PIE) Auditor Registration Regulations [link ]

Read the guidance [link ].

The Regulations will be made on 7 April 2026 (at which time the signed version will be published on the FRC website), and the Regulations and guidance will take effect on 20 April 2026.

Explore the topics

• Publications

Related documents