EXCLUSIVE: KPMG takes on LLP status
KPMG has become a a limited liability partnership, taking on its new legal status from midnight on Friday.
The Big Five firm will become the second to adopted LLP status – Ernst & Young became an LLP as soon as the option became available last year.
By becoming an LLP, KPMG will be able to offer its partners protection from legal action where they have not been directly involved. Under the current system, every partner is ‘jointly and severally’ liable for mistakes made by other partners in the firm.
Although KPMG will be following in the footsteps of E&Y, it had already incorporated its audit practice as long ago as 1996, a move which led it to become the first large accountancy firm to publish its accounts.