Holt to head KPMG's UK arm ahead of Carillion probe outcome

LONDON, April 12 (Reuters) - Global accountants KPMG said on
Monday that Jon Holt has been elected by partners to head its
2.3 billion pound ($3.17 billion) UK arm, which faces a
potential fine and major industry reform.

Holt, head of audit since 2019, takes up the CEO job
immediately until September 2025, replacing Bill Michael, who
resigned after reports that he told partners to "stop moaning"
about the impact of COVID-19 on their lives.

"Now is the time to challenge ways of working and use what
we’ve learnt during the pandemic to really drive positive
action," Holt said in a statement.

Michael had also been UK chair, a role that has since been
split off and filled by Bina Mehta.

The Financial Reporting Council, which regulates
accountants, delivered a second report to KPMG in February on
its investigation into how KPMG audited Carillion, the UK
builder whose collapse has led to radical proposals to reform
auditing.

It indicates the regulator has found breaches of auditing
standards and is giving KPMG time to respond before it makes a
final decision on whether to pursue enforcement action and
financial penalties.

Any fine would likely be one of the FRC's largest ever.

Holt will also help KPMG navigate changes into how the UK
audit market operates by running audit as a separate unit from
consultancy, and potentially sharing audits with smaller rivals
to boost competition.

($1 = 0.7266 pounds)
(Reporting by Huw Jones and Kanishka Singh, editing by Chizu
Nomiyama)

Carillion Plc