FAQs – OUR LEGAL STRUCTURE FROM 1 JUNE 2016
What is happening to Deloitte New Zealand?
- As of 1 June, we will transition to operating through Deloitte Limited.
- The only change you will notice is the Deloitte contracting entity directly responsible for your engagement.
- From 1 June, we will:
- Have the same partners and staff (and they will hold the same qualifications and professional memberships as they do now).
- Be based in the same locations.
- Provide services of the same high quality.
- Provide services on our usual terms and conditions, and with the same professional indemnity cover, as now.
What is Deloitte Limited?
Deloitte Limited is a New Zealand company which, from 1 June 2016, will be a registered audit firm providing audit services to our clients. Deloitte Limited is also the trustee of the Deloitte Trading Trust, a New Zealand trust that currently employs our staff and holds Deloitte’s assets. From 1 June 2016, it will also provide services to our non-audit clients.
Why is Deloitte reorganising its business in New Zealand?
We have grown significantly over time. Additionally, recent law changes now enable audit firms to operate as normal limited liability companies. We have taken the opportunity presented by these two factors to update and simplify our legal structure. This involves moving our services largely into one entity, Deloitte Limited.
When will the reorganisation happen?
- This change to our legal structure will become effective on 1 June 2016.
I am an audit client of Deloitte New Zealand, what will change for me?
- Nothing will change immediately because your current engagement letter with the Deloitte partnership will remain in place.
- You will continue to have the same audit partner and audit personnel.
- The Deloitte partnership will perform all current engagements and remain a registered audit firm while it does so.
- Audit engagements starting on or after 1 July 2016 will be transitioned over time to Deloitte Limited, a registered audit firm. Those engagements will be:
- performed by the same Deloitte partners and other personnel as now,
- on our usual terms, including the same professional indemnity cover, and
- subject to the same ethical and professional standards as now.
I receive non-audit services from Deloitte New Zealand, what will change for me?
Where we are delivering services to you under our standard Master Terms of Business
- From 1 June 2016, your existing engagement letter will be assigned to Deloitte Limited (as trustee of the Deloitte Trading Trust).
- Deloitte Limited (as trustee of the Deloitte Trading Trust) will be the party responsible for providing services to you.
- Your engagement will be performed by the same Deloitte partners and personnel at the same locations as now. Our services will continue to be provided to the same high quality and on our usual terms, including professional indemnity cover.
Where we are delivering services to you under a contractual form other than our Master Terms of Business
- Nothing will change immediately because your current engagement letter / statement of work with the Deloitte partnership will remain in place until it is agreed to transition to Deloitte Limited.
Will the Deloitte staff, or contact numbers / emails, be changing?
- No. There are no changes affecting staff or contact details.
Will the reorganisation affect my payment arrangements with Deloitte?
- No, you can continue making payment to the same bank accounts.
What will happen to the Deloitte partnership after the reorganisation?
Our partnership will remain. It will now own the Deloitte business rather than have that business operating through it. While the Deloitte partnership will no longer directly enter into engagements with clients, it will remain a member of the Deloitte Global Group and provide internal services and support to Deloitte in New Zealand.
What is meant when we refer to “Partner” or “Director” post 1 June?
- “Partner” refers to the partners of the Deloitte partnership that will own Deloitte Limited. They will separately work for and behalf of Deloitte Limited as part of providing services to clients.
- “Director” is a title given to individuals that work in Deloitte Limited as part of providing services to clients. It does not refer to directors of Deloitte Limited in a legal sense.
Who can I contact for more information?
- You should contact your engagement partner in the first instance.