PwC told not to ‘repackage’ Japanese firm

PricewaterhouseCoopers’ plans to launch a new partner firm in Japan are being
closely watched by the country’s Financial Services Agency, which has warned the
firm not to simply re-package Chuo Aoyama PwC, recently penalised over
accounting fraud.

Toshitake Kurosawa, director for international financial markets at the FSA,
said PwC should ensure the new company was a different entity from Chuo Aoyama,
the FT reported.

Last week the Big Four firm sent a senior official to Tokyo to negotiate with
the FSA about the details of its new Japanese partner.

Chuo Aoyama PwC was ordered to suspend business for two months after three
partners were arrested last year for their alleged role in accounting fraud at
Kanebo, the cosmetics group.

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