Inquiry calls for strict new rules for big four consulting firms
Key Points
- Why it matters: The Senate consulting inquiry recommendations affect how the firms are structured, regulated and how they sell to the public service
- Context: The PwC tax leaks scandal has highlighted how large partnerships are not clearly regulated, weaknesses in how the public sector buys advisory services
- What next: The government is reforming its procurement policies and examining how to regular large partnerships
The big four consulting firms should be subject to stricter oversight, parliamentary approval of $15 million-plus contracts, and tougher regulation more in line with corporations of their size and influence, a Senate inquiry into the industry has found.
In its third and final report, tabled on Wednesday afternoon, the Senate committee found the major consulting firms operated in a “grey area”. It recommended sweeping changes to how the firms are regulated, including a review of legislation governing partnerships and parliamentary examination of consultants and professional bodies.
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