KPMG denies it has caved in to the SEC
KPMG has said the flotation of its consultancy arm in the US will not change its stance opposing the Securities and Exchange Commission proposals on auditor independence.
The Big Five firm last week moved to deny reports that the flotations implied it had ‘acquiesed’ in the face of the SEC, and said that it would maintain staunch opposition in support of its US branch, to the proposals.
KPMG has been outspoken in its criticism of the SEC and its proposed new rules which would mean the separation of audit firms from their consultancy divisions.
KPMG in the UK has even gone so far as to say it could not rule out legal action against the SEC if the proposals went ahead.
Reports in last week’s press claimed opposition to the SEC had receded because of the KPMG Consulting flotation and the divorce settlement between Andersen Consulting and Arthur Andersen.
However, the initial US flotation will not affect consulting services in the UK which will remain under the same roof as auditing services.
But in the weekend press, chairman of KPMG’s UK consulting practice Eddie Oliver, said the firm’s British arm will be involved soon.
‘In 12 to 18 months we will see the structure of the UK consultancy change. A London float is probably not the likeliest outcome, but one option might be for the US consulting company to make a second public offering and use the proceeds to buy us,’ he told the Sunday Business.
KPMG in the USA will also remain in opposition to the SEC because, even after separation from its consulting arm, it will retain services in a multidsciplinary format which the SEC would still want to see removed.
And despite the high profile divorce Arthur Andersen still posesses a consultancy which it intends to retain.
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