Macquarie Group has announced it will drop KPMG as an auditor, amid an ongoing scandal relating to its handling of confidential information.

Macquarie announced on Wednesday afternoon that its board held concerns over the firm's auditing practices, amid ongoing scrutiny of KPMG.

"The decision follows continued scrutiny of KPMG Australia's audit practice, including information exposed by the Parliamentary Joint Committee on Corporations and Financial Services," the statement said.

"It also follows Macquarie's formal enquiries of KPMG to consider its capacity to deliver the audit, as well as the nature and impact of ongoing issues at KPMG Australia."

The board said it would instead recommend incumbent auditor PwC auditor at the company's annual general meeting.

KPMG also released a statement acknowledging the decision.

"While disappointed by the outcome, KPMG respects the decision taken by Macquarie," the statement read.

KPMG chief executive John Sams said Macquarie's announcement was "a clear reminder that the consequences of our past failings are real".

"Rebuilding trust will require sustained action, transparency and time. I am committed to leading this change with honesty, transparency and urgency," he said.

Whistleblower raised concerns 'through the appropriate channels'

KPMG has faced scrutiny over the alleged misuse of client data and misconduct after a whistleblower brought their complaints forward in 2024.

Public documents released by the parliamentary committee,...

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