Lloyds Banking Group PLC (LON:LLOY) has confirmed it will appoint Deloitte as its auditor following reports that the firm was its only viable option because the UK’s other biggest accountants have conflicts of interest.
Deloitte will start as the bank’s auditor from 2021, replacing PricewaterhouseCoopers (PwC). It will end the UK's longest-running audit relationship, with PwC overseeing the lender’s accounts since 1865.
PwC will audit Lloyds accounts until the year ending 31 December 2020, subject to a shareholder vote at the annual meeting.
Lloyds had to choose a new auditor by 2021 under European Union rules.
Sky News had reported in August that the bank may be forced to appoint Deloitte given that KPMG audited HBOS, which was bailed out by Lloyds during the height of the financial crisis, while EY audits rival Royal Bank of Scotland Group PLC (LON:RBS).
It said the situation ramps up pressure on politicians and regulators to deliver reforms that strengthen competition.
In October, the Competition and Markets Authority said it had launched a detailed investigation into the audit sector to “examine “concerns that it is not working well for the economy or investors”.