Standard Life appoints KPMG as new auditor
Standard Life has announced its intention to name KPMG as its new external auditor, following a competitive tender process.
The new appointment will be recommended to the Standard Life shareholders for approval at the 2017 AGM, while PwC, who has maintained a partnership with the company for 22 years, will continue to handle the audit for this financial year.
In a statement, the Standard Life Audit Committee cited that new audit rotation rules would only allow a three-year reappointment period for PwC and described this as a "less than optimal" solution given the resultant succession of tenders.
Kevin Parry, Audit Committee Chairman, said: "On behalf of the board, I would like to thank [PwC] for the professionalism and care they have demonstrated in their external audit role over many years.
"The tender process was transparent, comprehensive and thorough. We look forward to a constructive and professional relationship with KPMG in support of the audit committee's responsibility to oversee our financial reporting."
Standard Life’s 2015 annual report showed PwC receiving a total of £7.3m for both audit and non-audit fees.
The new audit rotation regulations are part of the EU audit regulation changes, due to come into effect next month. Changes to current practice will include mandatory audit tendering every ten years among public interest entities and a 20 year rotation period for auditors.