EY to brief UK partners on plans to split up business in biggest Big Four shakeup in decades
EY is set to brief its UK partners on plans to break up the firm as the accounting firms pushes forwards with plans for the biggest shakeup in the Big Four for decades.
The Big Four accountancy firm has invited more than 780 of its UK partners to a summit at a central London hotel, where it will outline its plans to split, Sky News reported.
The summit is set to see EY outline the next steps in its plans to separate its audit operations from its advisory business, after leaked documents showed partners could receive windfalls of up to $8m (£6.5m) each, if the plans go ahead.
The plans come as EY is seeking to distance itself from the conflicts of interest issues that have plagued the Big Four for years, in the face of mounting public and political pressure.
The proposals to separate EY’s advisory business from its audit segment is aimed at removing the conflicts of interest, by ensuring the interests of those auditing major companies are not aligned with the people seeking to sell those same businesses advice.
The efforts come as the Big Four have faced significant pressure to deal with any potential conflicts, in the wake of string of high-profile accounting scandals involving some of Britain’s major firms.
The plans could see EY float its consulting business on the stock market, with a view to raising $10bn by selling off 15 per cent of shares in the new advisory firm.
An EY spokesperson said the summit will see partners “hear strategic updates from leaders” and “look at the forthcoming years”.
Although EY could announce the plans in coming weeks, any split would require regulatory approval and positive partner vote.