KPMG Australia drops insolvency arm
KPMG's Australian firm has ditched its insolvency arm in a bid to maintain its auditor independence.
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The firm’s audits of major Australian banks, such as ANZ and St George, led to a potential conflict of interests because 80-90% of its insolvency work derives from them, according to The Australian.
Insolvency partners Tony McGrath and Colin Nicol, both of KPMG, will establish McGrath Nicol & Partners and take AUS$30m (£11.8m) of annual fees to the newly-formed insolvency practice.
KPMG chairman Lindsay Maxsted said the firm had reacted to the ‘change in market conditions’, as banks do not want to give non-audit work to the firm that acts as its auditor.