Financial Times FT.com

SEC blocks auditor liability deals

By Jennifer Hughes

Published: March 10 2009 23:32 | Last updated: March 10 2009 23:32

UK companies registered with the Securities and Exchange Commission have been effectively blocked from striking deals that would limit the liability of their auditors.

Auditors usually bear unlimited liability, meaning in the event of a company collapse, they can be sued for all the lost value regardless of the size of their actual role.

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