PwC partners under fire for private property investment club

Eleven partners at the Dutch arm of accountancy group PwC have set up a property investment partnership to the tune of €4.5m, the Telegraaf reports on Saturday.

PwC has confirmed the report but says ‘partnerships within partnerships’ are undesirable and that it will pressure partners, including two members of the management board, to sell their interests next week, the Telegraaf says.

The company will then ban internal investment clubs although individuals will still be able to invest in property.

The Hague

In total, 11 PwC partners were involved in buying a block of flats and other residential property in The Hague for €4.5m.

The managers say they will use the income from their investment to build up a pension because investing in shares is ‘virtually impossible’. Investing in shares leads to a conflict of interest and so partners opt for long-term, stable investments, a PwC spokesman told news agency ANP.

Earlier this year, the chairman of PwC competitor KPMG resigned, partly because he was the driving force behind a private investment club.

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