Lufax (HKG:6623) has named Dicky Peter Yip as its chairman and an independent non-executive director effective immediately, following which Yong Suk Cho will cease to act as chairman, a Thursday Hong Kong bourse filing said.

On the same day, Alston Peiqing Zhu stepped down as the financial services company's CFO and an executive director.

The firm, on the same day, resolved to appoint Ernst & Young and Ernst & Young Hua Ming as its new auditors to fill the vacancies caused by the removal of PwC and PwC ZT, subject to shareholder approval.

The actions come about after the company received communication from PwC raising concerns about certain transactions related to affiliated entities and investments in discretionary trusts.

The firm launched an investigation, and while its findings were contrary to the allegations, they did show that the relevant disclosures were not made properly.

Based on how the series of transactions involving certain high-yield assets were accounted for, the company's balance sheet showed an overstatement of both assets and liabilities since the second half of 2023.

The firm will be making certain accounting adjustments to ensure that its investments in discretionary trusts are fairly recorded in accordance with the applicable rules and accounting standards.

Subsequently, the firm hired the new auditors to re-audit its financial statements for the years ending Dec. 31, 2022 and 2023.

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