EY has set aside a record £188 million to cover regulatory fines and legal claims, the highest provision disclosed by any Big Four firm. This amount represents a dramatic increase from the previous year's £44 million and is nearly seven times the firm's annual average since 2002. The provisions reflect mounting litigation risks across the accounting sector.

This surge comes as EY battles multiple regulatory investigations and legal claims tied to audit quality failures. The firm faces probes over audits of Shell, Post Office, and collapsed retailer Made.com, while also dealing with the aftermath of a £2 billion lawsuit from NMC Health administrators. In February, EY settled the NMC case for an undisclosed sum.

EY's legal challenges mirror industry-wide pressures, with Big Four firms seeing profits squeezed by rising litigation costs and slowing revenues. The firm was fined approximately £5 million in the year ending June 2025, including penalties for breaches in Thomas Cook's accounts. Compared to peers, EY's provisions far exceed those of Deloitte (£57 million), KPMG (£31 million), and PwC (£19 million), highlighting the scale of its current legal exposure.