Totem and PwC terminate six-year relationship

UK derivatives pricing service provider Totem Market Valuations and international accounting firm PricewaterhouseCoopers (PwC) have ended a six-year co-operation relationship.

The decision to terminate the formal association between the two companies was made to head off any potential conflict-of-interest issues. Totem provides a wide range of consensus derivatives prices to the financial services community. These prices are used to mark derivatives positions to market for audit purposes. PwC acts as the auditor for many of Totem’s clients.

Totem, set up in 1997 by its founders Tim Barker and Ed Barlow, is now seeking new offices. It currently rents space from PwC on a commercial basis.

Barker told RiskNews that PwC’s initial support for Totem was critical to its success, but now Totem has established a large client base, the accounting firm’s support is less important.

“Recent accounting changes have encouraged some companies to place even greater reliance on Totem’s services, and to avoid any issues regarding the future independence of our two businesses we have reluctantly decided to end our formal relationship,” said London-based PwC partner Chris Rowland.