Big Four rebuffed in attempt to alter liability law
Lord Mandelson sympathetic to firms' concerns over major lawsuits, but no further change to audit liability laws to follow
Attempts by the Big Four to limit their liability have been rebuffed by the
With the biggest firms facing huge lawsuits from thw credit crunch and Madoff
fallout, they lobbied business secretary Lord Mandelson for a liability cap –
but to no avail, reports
The firms spoke to Lord Mandelson in April to look for a way to get round
problems with the UK’s liability regime, which currently sees no major
businesses using an audit liability limit – plus a potential stumbling block of
the US regulators not allowing a limit on companies with a US arm.
“The Government, having legislated to allow proportionate liability for
auditors, is apparently content to have its policy frustrated by a foreign
regulator,” said PwC head of professional affairs Peter Wyman.