GT fails to break FTSE 100 stranglehold

The Big Four have maintained their stranglehold on the FTSE 100 in the latest
reshuffle of the index.

Mid-tier firm Grant
had threatened to break into the audit market for the top 100
companies after a surge in the market capitalisation of investment trust
Templeton Emerging Markets.

But GT’s client missed the cut, meaning the FTSE 100 remains the exclusive
preserve of the Big Four.

When the FTSE 100 reserve list was announced after the last review in
December, business giants including Burberry, EasyJet and Drax were all vying
with Templeton for a FTSE 100 berth, but the shortlist had been turned on its
head by the time the changes were to be made.

Eurasian Natural Resources Corporation, Tate & Lyle, and Cobham were
promoted to the top flight, as Taylor Wimpey, Yell Group, and Rentokil Initial
dropped out.

The reshuffle took place last week and five of the six companies that swapped
places were clients of PricewaterhouseCoopers. PwC has almost twice as many FTSE
100 audits as closest challenger KPMG.

The FTSE 100 has been without mid-tier auditor representation since
PartyGaming crashed out of the index in 2006.

Related reading