Public interest entity (PIE) meaning

A public interest entity (PIE) is an organisation whose scale or market impact means its statutory audit, auditor independence and reporting are subject to enhanced regulation and oversight. The term is defined in legislation. In Ireland (and the EU), Article 2 of the Statutory Audit Directive (2006/43/EC, as amended by 2014/56/EU) and the EU Audit Regulation (537/2014) treat as PIEs: entities with transferable securities admitted to trading on an EU regulated market; credit institutions under Directive 2013/36/EU; insurance undertakings under Directive 91/674/EEC; and entities a Member State designates as of significant public relevance. In the UK (England & Wales, Scotland and Northern Ireland), the retained audit regime adopts the same core categories via domestic legislation. However, from 1 January 2021, admission only to an EU regulated market no longer makes an entity a UK PIE. UK PIEs still include: issuers with securities admitted to a UK regulated market; credit institutions (including banks and building societies); and insurers. Member State designation is also possible in the UK. PIE status matters for audit tendering and rotation, restrictions on non‑audit services, transparency reporting and supervision by the Financial Reporting Council, and therefore frequently features in corporate governance, capital markets and audit engagement advice.