In a statement, Standard Life said KPMG would become its auditor for the year ending 31 December 2017. The appointment will be recommended to the company's shareholders for approval at the 2017 AGM, while PwC will handle the audit for this financial year.

The move follows a competitive tender process overseen by the audit committee, which was outlined in the 2015 annual report. At the time, Standard Life said it would not invite PwC to tender as the maximum time the firm could serve as auditor under the new audit rotation regulations would be three years, and the company said this would be ‘less than optimal’, as business would be too disrupted by having another audit tender in quick succession.

Kevin Parry, chairman of the Standard Life audit committee, said: ‘PwC has been the company's auditor since 1994 having been reappointed after the last tender in 2003. On behalf of the board, I would like to thank them for the professionalism and care they have demonstrated in their external audit role over many years.

‘The tender process was transparent, comprehensive and thorough. We look forward to a constructive and professional relationship with KPMG in support of the audit committee's responsibility to oversee our financial reporting.’

According to its latest annual report, Standard Life paid PwC a total of £7.3m in 2015. This was made up of a group audit fee of £3.7m, reduced from £4.7m the previous year because of the disposal of the company’s Canadian business.

Standard Life also paid £2.3m for audit-related services, mostly for work connected with Solvency II, up from £1.5m in 2014, plus £1.3m in non-audit fees (compared to £2.5m in 2014).

Edinburgh-based Standard Life held its first London AGM this week, which saw shareholders take issue with executive remuneration levels, with 22% voting against its executive pay report. This was despite the earlier announcement that chief executive Keith Skeoch has volunteered to give up part of his bonus.