F1...

F2... For the purposes of F3paragraph 13 of Schedule 1 to the Statutory Auditor and Third Country Auditors Regulations 2016, fees F4“based on any form of contingency” means fees for audit engagements calculated on a predetermined basis relating to the outcome or result of a transaction or the result of the work performed. Fees shall not be regarded as F5being based on any form of contingency if a court or F6the competent authority has established them.

When the statutory auditor F7... provides to the F8audited person, its parent undertaking or its F9subsidiary undertakings, for a period of three or more consecutive financial years, non-audit services other than those referred to in Article 5(1) of this Regulation, the total fees for such services shall be limited to no more than 70 % of the average of the fees paid in the last three consecutive financial years for the statutory audit(s) of the F8audited person and, where applicable, of its parent undertaking, of its F9subsidiary undertakings and of the consolidated F10accounts of that group of undertakings.

For the purposes of the limits specified in the first subparagraph, non-audit services, other than those referred to in Article 5(1), required by F11legislation of any part of the United Kingdom shall be excluded.

F12...

When the total fees received from a public-interest entity in each of the last three consecutive financial years are more than 15 % of the total fees received by the statutory auditor F13... in each of those financial years, such a statutory auditor F14... shall disclose that fact to the audit committee and discuss with the audit committee the threats to F15its independence and the safeguards applied to mitigate those threats. The audit committee shall consider whether the audit F16... should be subject to an engagement quality control review by another F17person who is eligible for appointment as a statutory auditor prior to the issuance of the audit report.

Where the fees received from such a public-interest entity continue to exceed 15 % of the total fees received by such a statutory auditor F18..., the audit committee shall decide on the basis of objective grounds whether the statutory auditor F19of the public interest entity may continue to carry out the statutory audit for an additional period which shall not, in any case, exceed two years.

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