The move is the result of a concerted lobbying campaign by E&Y and other firms over recent years, including the threat of locating off shore to reduce the firms’ potential liabilities.
Firms have been able to register for LLP status since 6 April 2001 following the enactment of legislation introduced last year.
Under the current system for partnerships, all partners of a firm can be held ‘joint and severally’ liable for any action brought against the firm.
Conversion to LLP status is seen as a natural next step for the firm, which followed KPMG to become one of only two big five firms to publish its annual accounts.
E&Y’s chairman, Nick Land, said: ‘The introduction of LLPs is an important step forward in beginning to provide a fair and reasonable measure of protection for businesses such as ours in an increasingly litigious society.’
Land added: ‘I am convinced that this is the best option for us and I believe that LLP status will become common-place for professional services firms in the next few years.’
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