HSBC 2010 Annual Report Download - page 287

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Overview Operating & Financial Review Governance Financial Statements Shareholder Information
8 Auditors’ remuneration
Auditors’ remuneration in relation to the statutory audit amounted to US$51.4m (2009: US$50.7m; 2008:
US$54.9m). The following fees were payable by HSBC to the Group’s principal auditor, KPMG Audit Plc and its
associates (together ‘KPMG’):
Fees payable by HSBC to KPMG
2010
2009
2008
US$m
US$m
US$m
Audit fees for HSBC Holdings’ statutory audit1 ........................................................ 2.4
2.3
2.1
– fees relating to current year ................................................................................ 2.4 2.1
2.5
– fees relating to prior year ................................................................................... –
0.2
(0.4)
Fees payable to KPMG for other services provided to HSBC ................................... 75.9
77.1
88.3
Audit-related services:
– audit of HSBC’s subsidiaries, pursuant to legislation2 ................................. 46.7 45.9
48.6
– other services pursuant to legislation3 ........................................................... 20.8 24.2
26.5
Tax services4 ........................................................................................................... 2.4 2.6
3.1
Other services:
– services relating to information technology5 ................................................. 0.1 0.3
0.6
– services related to corporate finance transactions6 ........................................ –
0.1
1.4
– all other services7 ........................................................................................... 5.9 4.0
8.1
Total fees payable ....................................................................................................... 78.3
79.4
90.4
1 Fees payable to KPMG Audit Plc for the statutory audit of the consolidated financial statements of HSBC and the separate financial
statements of HSBC Holdings. They exclude amounts payable for the statutory audit of HSBC Holdings’ subsidiaries which have been
included in ‘Fees payable to KPMG for other services provided to HSBC’.
2 Including fees payable to KPMG for the statutory audit of HSBC’s subsidiaries.
3 Including services for assurance and other services that relate to statutory and regulatory filings, including comfort letters and interim
reviews.
4 Including tax compliance services and tax advisory services.
5 Including advice on IT security and business continuity and performing agreed-upon IT testing procedures.
6 Including fees payable to KPMG for transaction-related work, including US debt issuances.
7 Including other assurance and advisory services such as translation services, ad-hoc accounting advice and review of financial models.
No fees were payable by HSBC to KPMG for the following types of services: internal audit services, valuation and
actuarial services, services related to litigation and services related to recruitment and remuneration.
Fees payable by HSBC’s associated pension schemes to KPMG
2010 2009 2008
US$000 US$000 US$000
Audit fees .................................................................................................................... 384 670 720
Tax services ................................................................................................................ – – 73
All other services ........................................................................................................ – 260 –
Total fees payable ....................................................................................................... 384 930 793
No fees were payable by HSBC’s associated pension schemes to KPMG for the following types of services: other
services pursuant to legislation, services relating to information technology, internal audit services, valuation and
actuarial services, services related to litigation, services related to recruitment and remuneration, and services related
to corporate finance transactions.
In addition to the above, KPMG estimate they have been paid fees of US$14.9m (2009: US$8.1m; 2008: US$4.8m)
by parties other than HSBC but where HSBC is connected with the contracting party and therefore may be involved
in appointing KPMG. These fees arise from services such as auditing mutual funds managed by HSBC and reviewing
the financial position of corporate concerns which borrow from HSBC.
Fees payable to KPMG for non-audit services for HSBC Holdings are not disclosed separately because such fees are
disclosed on a consolidated basis for HSBC Group.