UPDATE: RSM UK restructures C-Suite after account errors worth £3.8m
After £3.8m worth of errors were found in the firm's accounts and multiple C-suite members were removed from their positions, major changes are on the accountancy firm's horizon.
Mid-tier firm RSM UK has published its accounts for the year which reveal profit-affecting errors of nearly £3.8m.
The report for the year ended 31 March 2019 revealed errors within its provisions for professional liabilities claims, dating back to 2018 and prior years.
These mistakes offer insight into why the firm quietly removed former CEO David Gwilliam, former CFO Nigel Tristem, and former COO Robert Ross from their positions in late December 2019.
An RSM spokesperson said: “By way of response to these issues, the board made appropriate management changes.
“RSM remains in very strong financial health, well placed to capitalise on all the opportunities available to it in the market, and to grow on its success of recent years.”
Gwilliam was appointed as RSM UK’s CEO in February 2018, taking over for long time CEO Laurence Longe, and Ross was appointed COO in April 2018. Tristem has been with the company for over 37 years.
Pending the appointment of a new CEO, Jez Filley has been appointed as the Acting CEO. Jill Jones is now the Acting COO, and Andrew Westbrook has been named as Acting CFO.
A source with professional ties to RSM UK indicated that there have also been delays to the December AGM, with it being pushed back to January 2020, affecting when the firm paid dividends on stock.
RSM UK’s website’s “Meet our Management Team” section still lists Laurence Longe as a Partner and Simon Harding-Rolls as Chairman.
“Simon will lead the board in its work with the firm’s National Leadership Team, its partners and staff, to continue RSM’s success,” a RSM UK spokesperson said.
These sudden changes come after a productive year for the firm, which saw them become the auditor of Sports Direct in October and place seventh on the Accountancy Age 50+50 accountancy firm rankings.
Resources & Whitepapers
Accounting Software The power of customisation in accounting systems
RSM UK’s auditor for the report period, Moore Kingston Smith, declined to give comment.