The life cycle of FTSE 350 companies
Deloitte’s response to the Competition Commission's working paper
Deloitte’s response comments on the following areas:
- Opportunities created by new entrants to the FTSE 350
- No evidence of specific targeting of mid tier firms’ clients
- New measures introduced by the FRC
Movement of companies between the indices provides significant opportunity for auditors of small cap and private companies. Furthermore, there is no evidence to suggest specific targeting of mid tier firms’ clients by Deloitte or by top tier firms. Deloitte seeks to compete for the audit of all companies regardless of their current incumbent.
In this response we also note that analysis of historical switching behaviour would only be relevant for the purposes of this CC investigation to the extent that the historical observations have some predictive power for future switching behaviour. Due to the new measures recently introduced by the FRC, this is no longer the case.