Ernst & Young’s German law firm is set to hive off half of its Stuttgart office in order to comply with German rules on auditor independence.
Twenty out of 40 lawyers and notaries in the Stuttgart office will form a new firm, which will be totally independent of both Ernst & Young and EY Law Luther Menold. According to EY Law, the group will take with them a “significant proportion” of Ernst and Young’s German audit clients.
The remainder of the lawyers will stay at Luther Menold and advise Ernst & Young’s non-audit clients.
Luther Menold managing partner Stefan Kraus said: “The move is restricted to the Stuttgart office and is the result of the particular strength of the Ernst & Young audit practice in the city. It is agreed by all those involved.”