RSA caps auditor fees from consultancy services
RSA Insurance Group (RSA) has said that it will limit the amount of fees its auditor can earn from providing consultancy work to the insurance company.
KPMG will be able to make a maximum of 25% of its total audit fee from non-audit services such as advice on tax, strategy and IT, RSA said in its annual report.
The change is similar to a proposed reform of audit rules by the European Commission – including a cap of 70% on fees for non-audit services and banning some.
The reforms, which have been opposed by the big accountancy firms, are intended to reduce conflicts of interest between auditors and their clients.
KPMG, which last year replaced Deloitte as auditor of the struggling insurer, made £...