The international audit group, EY, is preparing to create a new legal entity in Brussels. Its purpose: to manage the operations of its European Union (EU) subsidiaries, and their 3,500 partners, report L’Echo and De Tijd on Tuesday.
The European parent company for the international audit and consultancy group, EY, is leaving London to set up in Brussels. The Belgian Institute of Company Auditors (the IRE) has thus received an approval application from EY, for a new legal management entity for all of the EY subsidiary companies based within the EU.
The decision follows the increasingly likely prospect of a “hard Brexit”. EY must have an audit licence within at least one member state, to be able to manage and supervise its various audit companies within the other EU member states. The European parent company, EU Europe LLP, currently operates using a British audit licence. If the United Kingdom leaves the EU, EY has to request such an approval in another EU member state.
Following an in-depth analysis, the group has chosen Brussels as the appropriate location for its umbrella entity going forward.