Tuesday 30 July 2019 8:09 pm

JP Morgan starts European audit review

JP Morgan Chase has reportedly launched a review into its current relationship with auditors for its major European arm.

The Wall Street giant has kicked off a process to look at the role currently held by PricewaterhouseCoopers (PwC) as the accountant of JPMorgan Securities.

Read more: Metro Bank finance director steps down to take new role at Revolut

PwC, which has been JP Morgan’s auditor for the last 10 years, could still retain the business as the incumbent auditor as it is not captured by rotation rules at this point in time.

Sources told Sky News, which first reported the review, that PwC’s relationship with the New York-listed JPMorgan Chase is not under review.

According to the broadcaster, a number of other JPMorgan-owned entities in Europe have been carrying out an audit tender process on the basis that a new firm will have to be appointed as PwC has been in place for two decades.

In May fellow Wall Street investment bank Goldman Sachs looked beyond the Big Four accountancy groups by selecting Mazars, the UK’s eight largest auditor, as its beancounter.

Read more: Accountancy firm of the year

The new appointment to the role, which had previously also been held by PwC, came in the wake of new European audit regulations aimed at breaking the dominance of the Big Four over the listed audit market.

JP Morgan declined to comment.