Big Four auditors are braced for a fresh shake-up in the FTSE 100 as Friends Provident and Resolution gear up to merge.

Ernst & Young audits Resolution, which has in terms of director appointments appeared to be the senior partner in the move, suggesting E&Y could win the audit of a combined £8.6bn group.

KPMG audits Friends Provident, whose FD Jim Smart is set to exit another plum role after suffering the same fate when Boots merged with Alliance UniChem.

Resolution’s FD Jim Newman has already been announced as FD if the deal is pushed through.

The deal could yet be scuppered by Resolution’s zombie fund rival however – Pearl.

Pearl owns a large chunk of Resolution shares and there are rumours it could make a bid.