London (Reuters) – four major auditing firms in the world will have to be split and rename according to a preliminary draft of the European Union (EU) to toughen measures on conflicts of interest and deficiencies which put in evidence the financial crisis.

“The confidence of investors in audits has been hit by the crisis and I believe that the changes are needed in this sector,” said on Wednesday, Michel Barnier, Commissioner of market internal of the EU.

Policy makers questioned the reasons for which the Auditors gave fresh reports many banks which were then rescued by taxpayers when began the crisis financiera.

Barnier said that the recent apparent errors in audits to the banks of AngloIrish and Lehman Brothers, BAE Systems and Olympus, “suggest strongly that audits are not working as they should be”.

Requires a more robust monitoring and “more diversity in which is too concentrated, especially at the high end market”, stated.

Only four Auditors – Ernst & Young, Deloitte, KPMG, and PwC – revised accounts for the majority of the leading companies in the world, a situation which the Commission said was “essentially an oligopoly”.

According to the plan of Barnier, large auditing firms – the four main – will have to separate audit activities which are not linked to this activity, such as management of taxes and other consulting services “to avoid all the risks of conflict of interest”.

Claire Bury, one of the primary responsibility that is under the command of Barnier, said that the plans, if they are approved by the countries of the EU and by the European Parliament, will have impact on the “big four” business models.

The operations of large firms – defined as well as they have income by more than 1.5 billion euros in the EU – which are auditing will need to have structures legally separated.

“, Will have to change the names.” “I guess we will have problems of brand at the end,” said Bury during a press conference

Responsible for the Commission said the sector would need time to adapt, but expected that the new rules are in force in a period of three to five years.