Accounting Firms

EY names Rothschild to advise on $80bn separation

City sources said on Friday that Rothschild's mandate might also extend to parts of EY's European network

EY UK has asked investment bank Rothschild to advise on a forthcoming $80bn (£66m) separation of its audit and consulting services, according to Sky News.

It is thought that the move could trigger multi million pound windfalls for hundreds of partners, and that Rothschild could be further asked to advise on parts of EY’s European network.

City sources said on Friday (22 July) that Rothschild’s mandate might also extend to parts of EY’s European network.

EY are expected to release a formal announcement in the coming weeks, after partners in Britain were briefed on break-up plans.

It marks a divergence of strategy among the top accountancy firms in the country, as Deloitte and PricewaterhouseCoopers have both pledged to retain the existing integrated model.

Furthermore, it was reported last week that Bill Thomas, KPMG’S global chairman, had criticised EY’s move in a recent memo to partners.

He said: “Our responsibility is to leave the firm better than we found it for those who come after us – we are stewards of the business for our mentees and the next generation. To monetize the goodwill of our firm that has been created for over a hundred years, at the expense of the next generation, would be entirely contrary to our culture.”

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