PracticeAccounting Firms‘No pension conflict of interest’ at KPMG

'No pension conflict of interest' at KPMG

KPMG has denied that a potential conflict of interest exists over its appointment of Aon as trustees of its pension fund despite the company already providing the accountancy firm with financial services.

Link: KPMG fires pension fund trustees

Fund members have expressed concern over Aon’s appointment as trustee after it was revealed that the company already acts as brokers for KPMG’s professional indemnity insurance. They feel that this relationship may affect the trustee’s independence when making key decisions about the fund.

KPMG hired Aon Trust Corporation after it dismissed Capita Trustee Services in January. Previously, Capita had asked KPMG to fill a £60m gap in the employee pension fund and was rebuffed.

Staff fear Aon’s connections with KPMG may make them more sympathetic to the firm’s position on key matters to do with the fund.

One fund member said: ‘It stinks. I doubt whether the trustees can truly act in the interests of fund members if it has other business with KPMG.’

A spokeswoman for KPMG said: ‘There is no conflict of interest here. We buy two completely different types of professional services from Aon and the arms that deal with these services are very separate. Also Aon only brokers our insurance rather than actually providing the insurance itself.’

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