The Competition Commission (CC), in its Provisional Decision on Remedies, has recommended the prohibition of using ‘Big Four’ auditor clauses in loan documentation (including bond prospectuses). The CC considered such clauses to reduce competitiveness as they restrict a company’s choice of auditors. These changes are unlikely to be passed into law until October 2014 and, if passed, will only apply to UK companies required to file accounts under Part 16 of the Companies Act 2006. However, sponsors and borrowers may prefer to remove the provision from loan documentation, particularly where there is a UK entity within the group. Loan agreements entered into prior to the effective date of any legislation are expected to be grandfathered.