It’s no surprise given the events of the last 18 months that the question of whether to cap has resurfaced. This time round there are suggestions that the government and Brussels are more receptive to the idea. It is a move that would be fiercely resisted in many quarters, particularly after auditors have made other moves seeking to limit their liability in recent weeks.
But accountancy firms have argued that the alternative is worse. Smaller firms’ insurance premiums will be unaffordable; the bigger players will abandon commercial insurance as they would be uninsurable and audit fees would rise significantly.
It is by no means a certainty that capping will be introduced. But if there isn’t the appetite today, perhaps there never will be.
Carter Backer Winter has acquired Edwards Financial Services, expanding its financial planning department
New growth opportunities in Aberdeen, North East Scotland, are being invested in by Grant Thornton
Colin responds to the call for 'Darwinism' in accountancy
A new partner, Dermot Callinan, has joined Saffery Champness from KPMG where he was recently the head of the UK private client advisory team