Saga picks KPMG as its new auditor, replacing EY after a 10-year relationship

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Saga has ditched Ernst & Young (EY) as auditors in favour of KPMG, the company announced this morning.

EY has been the FTSE 250 firm's group auditor since September 2014, having previously been appointed auditor across the Saga's principal trading subsidiaries in 2007.

Read more: Over 50 per cent growth to Saga profits

Under audit directives, listed firms must put their audit out to tender every 10 years and change auditor every 20 years.

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Saga started a competitive tender process last year for the firm's audit and KPMG will take over formally from 1 February. EY will sign off its final audit opinion for Saga for year ending December 2016.

Read more: Watchdog issues new rules ahead of auditor merry-go-round

The appointment remains subject to approval by Saga's shareholder at its annual general meeting to be held in June.