M&G Decides to Appoint PwC as its External Auditor
Britain based Investment manager M&G has decided to appoint PwC as its new external auditor thus replacing KPMG which had been the firm’s statutory auditor since 1999
M&G is a well-known investment manager that operates in the United Kingdom as well as in other parts of the world. The company invests in and manages a wide range of assets including equities, real estate and fixed income. The UK based company which demerged from Prudential in October of last year, said in a statement that after it conducted a formal tender process, it decided to select PwC as its external auditor for the financial year ending December 31, 2022.
The appointment of PwC as the Investment firm’s external auditor will be recommended to its shareholders for approval at the company’s annual general meeting (AGM) that will be held in 2022.
In the company’s 2019 annual report, it said that it had decided to conduct a formal and competitive audit tender process in 2020, since the firm was required to change its statutory auditor by 2023 as per the auditor rotation rules. The company was also vary of the need to take into consideration the impact of the auditor change on the time schedule for implementing the new accounting standard that deals with insurance, IFRS 17 - Insurance contracts.
In the annual report, the company said that the Big Four Firm KPMG had worked on both the demerger as well as the first financial statements for M&G plc.
During the financial year ended December 31, 2019, the total fees which KPMG received from the investment manager amounted to £19.8m (2018: £6.4m) out of which £8m (2018: £6m) was for providing audit services while £11.8m (2018: £1.5m) related to non-audit work, largely relating to the work the Big Four Firm performed on the demerger of M&G from Prudential.