PWC Set to Replace Deloitte as the New Auditor of the Close Brothers Group for the Financial Period Ending in 2018

FTSE 250 UK merchant banking group has selected PwC as its new auditor after conducting a competitive and comprehensive tender process. PwC will replace Deloitte as the new auditor of the banking group once the shareholders approve this decision of the group’s management at the next AGM that will be held in November of this year.

As per the statement released by the audit committee of the group to the London stock exchange (LSE), the audit committee said that PwC would be the new auditor of the banking group for the financial period ending at July 31, 2018, subject to the group’s decision being approved by the shareholders at the next AGM of the group that will took place in November this year.

Deloitte will continue in their role as the group’s auditor for the financial period ending July 31, 2017. Last year, the group paid Deloitte a total sum of £1.9m out of which £1.2 million was paid for rendering audit services and the remaining £700,000 was paid against non-audit services which were rendered by the group. This time around the big four firm was not invited by the group to participate in the tender process basically due to the time period for which the firm has been the auditor of the group and the revised EU and UK law with regards to rotation of the auditor for a listed company.

The group thanked and appreciated Deloitte with regards to its contribution to the group and the work the firm has performed as the auditors of the banking group.

Deloitte has been the sole auditor of the banking group since 2008 but the firm’s relationship with the group goes way back to 1984 when Deloitte first started auditing the group along with another firm. As per the group’s 2016 annual report, the group did not conduct a full and comprehensive audit tender process but a detailed audit proposal was reviewed by the group at the time prior to the appointment of Deloitte as the sole auditor of the group in the year 2008.

Close Brothers is listed on LSE and is also a member of the FTSE 250. The group provides services such as deposit taking, lending, securities trading and wealth management services.