On November 14, the PCAOB adopted a rule amendment intended to allow the Board to act when a registered firm fails to file a Form 2 and pay annual fees for at least two consecutive reporting years. Under the amendment, the Board would be permitted to treat that failure to file as a constructive request for leave to withdraw from PCAOB registration and to deem the firm’s registration withdrawn. A firm would have 60 days to contact the PCAOB to stop the withdrawal process.

According to the PCAOB, as of August 31, 2024, 80 registered firms have not filed annual reports or paid annual fees for the 2022 and 2023 reporting years.

The Rule Amendment is subject to SEC approval. If approved, it will take effect for annual reports and fees that are due in 2025. The PCAOB press release, including the full text of the Amendment, can be found here.