'Big four' must split audit and consultancy work, says CMA

Must appoint separate CEOs and boards

James Phillips
clock • 5 min read

PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.

The so-called ‘big four' will need to set up separate management, accounts and remuneration; appoint a separate chief executive and board; separate financial statements; and, end profit-sharing between audit and consultancy. The Competition and Markets Authority (CMA) has today (18 April) recommended a suite of measures to boost the quality of audits and remove the potential of being "influenced" by the big four's larger consultancy businesses, which also conduct pension consultancy work. Recommendations In its final report of its statutory audit services market study, the CMA parti...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Regulation

Data-driven or anecdotal? Examining FCA Consumer Duty board reports

Data-driven or anecdotal? Examining FCA Consumer Duty board reports

'Data is not a by-product of systems; it is a core governance asset'

Chris Davies
clock 27 March 2026 • 6 min read
FCA 'consistently behind the curve' on British Steel – Complaints Commissioner

FCA 'consistently behind the curve' on British Steel – Complaints Commissioner

Regulator hits back at Complaints Commissioner’s final report

Jenna Brown
clock 26 March 2026 • 3 min read
Advisers warned against 'cost-saving' exercises as FCA proposes ditching annual suitability requirement

Advisers warned against 'cost-saving' exercises as FCA proposes ditching annual suitability requirement

Changes offer an opportunity for more ‘meaningful’ advice

Sophia Panayi
clock 26 March 2026 • 4 min read