Michael Snyder, chairman of the policy and resources committee at the Corporation of London and senior partner at accounting firm Kingston Smith, said that there was little reason why legislation could not be included in the companies bill currently passing through parliament.
‘People tell me that a system of proportionate liability would be more complicated to introduce and would create uncertainty,’ said Snyder.
‘But I have yet to hear a good explanation as to why it is more complicated or how the uncertainty could be any greater than it is now.’
Snyder said the government had in the past proved itself to be radical and reforming, and needed to be so again.
‘It is patently unfair that certain organisations can be hammered for the faults of others,’ he added, questioning whether there were human rights issues with the current system.
A government decision on auditor liability is expect in the next few weeks.
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