PwC partners ordered to cut ties with brokerage after internal investigation

PwC conducted an investigation into partners’ ties with brokerage Black River Management this year, covering matters including whether independence rules could have been broken

PwC has ordered nearly 300 of its US partners to cut ties with a tiny brokerage firm offering speculative small-cap investments after an internal investigation into the relationships.

The ruling has caused consternation at the highest levels of the Big Four accounting firm, where senior executives have for years offered an introduction to the brokerage Black River Management to colleagues and junior partners rising up the ranks, telling them it provides access to lucrative and hard-to-find investments.