On 26 September 2014, the Competition & Markets Authority (“CMA”) issued its final order implementing changes to the UK’s statutory audit market (the “Final Order”). By way of background, this action represents the final step in a process which commenced in March 2011 when the House of Lords Select Committee on Economic Affairs urged the Office of Fair Trading (“OFT”), the CMA’s predecessor, to investigate the UK audit market. Following an initial investigation by the OFT, an in-depth analysis of the market by the Competition Commission (“CC”) – now also subsumed into the CMA – concluded that competition in the audit market was restricted by factors which inhibit companies from switching auditors.
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