A key role in the move to compensate shareholders of Northern Rock has been handed to the ICAEW, with the institute set to sign off plans for an ‘adviser’ to value the company.

As major firms distanced themselves from the contract, which could be fraught with danger amid the possibility of shareholder legal action, it emerged that the Treasury is relying on the institute in its bid to find the right firm for the job.

The bill to nationalise the stricken bank details that the accounting institute will have the final say on whoever is chosen to work out what value Northern Rock still holds.

In its Northern Rock Compensation Scheme Order, the Treasury said: ‘Before making any appointment the Treasury must consult the Institute of Chartered Accountants in England and Wales.’

An ICAEW source said: ‘The Treasury approached us to ask if we would work with them to appoint the valuer. They want to ensure that whoever’s appointed has the appropriate qualifications and expertise.’

It was unclear this week whether the Treasury was looking for a firm to lead the review, or a high-profile individual. The Sunday Times quoted a figure from a ‘leading firm’ this week saying that they wouldn’t ‘touch it with a bargepole’.