KPMG, whose turnover in the UK was £2.3 billion last year, was subject to criticism over its role in auditing Carillion, the outsourcing firm that was its audit client,.

It could separate its audit division at the start of its next financial year on 1 October. The division received £572 million of fees last year.

400 jobs for Glasgow

The firm has announced that up to 400 jobs will be created during the next three years as Glasgow becomes the location for its second UK Managed Services hub. It already employs about 1,050 people in Scotland.

The hub will see 200 jobs created in the short term – 50 are already in place, with a further 150 from June – with a view to growing to 400 as the firm continues to increase operations in Scotland.

Roles will comprise a mixture of data gatherers, analysts and managers from a wide variety of backgrounds and specialisms, including modern apprentices, graduates and experienced professionals.

Based alongside KPMG’s Tax Centre of Excellence at 123 St Vincent Street, where the firm has taken up an additional two floors, the team will carry out bulk due diligence processing and large-scale data analysis for customers, such as handling regulatory requirements, complaints handling, customer remediation and various other business as usual and administrative functions.

Catherine Burnet, senior partner for KPMG in Scotland, said: “Managed Services will play a key role in the firm’s growth in Scotland. We recognise the country has a real depth of talent feeding in from its schools, colleges and universities, as well as an established financial services sector, and we want to harness those as part of our long-term strategy.

Economy Secretary Derek Mackay said: “This commitment sends a strong message that even in these uncertain times, we remain open for business and shows great confidence in Scotland as a centre of excellence for financial services.”