EY resigns as auditor for consultancy MJ Hudson amid “lost trust” in management

Ernst & Young (EY) has resigned as the auditor of asset management consultancy MJ Hudson, saying it has “lost trust and confidence” in the firm’s leadership.

MJ Hudson - which employs 300 and boasted 18 FTSE 100 clients as of November last year - first revealed EY had questions about its accounts in October 2022.

At the time, it said there were “ongoing discussions” with EY about its profit guidance for the year to 30 June.

Now, EY has said it will not audit the accounts as it has lost trust in MJ Hudson’s ability to provide accurate information. The FY2022 accounts are still unpublished.

“We are ceasing to hold office because we have lost trust and confidence in the company’s management and those charged with governance, and in their ability, along with your finance team, to provide us with accurate and reliable information,” EY said in its resignation letter.

MJ Hudson said it “continues to work with an external accounting and financial services firm to assist it in achieving the necessary clarity to enable the year end FY2022 reporting to be completed”.

MJ Hudson also announced it has received bids for some of its business units after reaching out to prospective bidders last month.