KPMG forces watchdog move on flotation of consultancy arm
Frustrated KPMG today fired a warning shot at US regulators who have stalled for more than a year on the proposed public offer on the Big Five firm's consultancy arm.
KPMG has now indicated that it will submit a fresh application to force the SEC and the Independence Standards Board, a body set up by the regulators and the big firms, into a decision.
Steve Butler, KPMG chief executive, said in the Financial Times that the filing will be made ‘in the very near future.’
The ISB was due to rule before the beginning of this year, but board member Butler believes it could take until the end of this year to decide.Butler said: ‘When you’ve been left in the deep freeze for 18 months – that’s unacceptable’.
He explained that the SEC usually process IPO filing’s within 90 days and the action would make the board’s deliberations irrelevant.’This should have been done a year ago’, he added.
The impending showdown comes as Big Five rivals have this year stolen ahead with business restructuring sweeping across professional services – Ernst & Young has agreed to a $12.4bn merger with France’s Cap Gemini and PricewaterhouseCoopers are breaking up into two or more businesses.
Grilled by US watchdog – a personal account