EY scraps break-up plan after months of internal dissent

Accounting firm EY has called off the plan to break up its audit and consulting businesses, the Financial Times reported on Tuesday, citing people with knowledge of the matter.

The decision will be communicated to partners in a note on Tuesday, the report said.

EY did not immediately respond to a Reuters request for comment.

The company had announced plans for the split in September, setting the stage for what could have been the biggest shake-up in the sector in more than two decades.

The London-based firm, which is one of the Big Four accounting giants, said the split could ease regulatory concerns over potential conflicts of interest.

Regulators were concerned the audit arm will not do its job fairly for its client if it also employed EY as a consultant.

But the plan had faced resistance from some of EY’s partners. Last month, the Wall Street Journal reported the company was considering several backup options, including selling off just the non-US consulting operation.

Reuters