PricewaterhouseCoopers' former public sector advisory business, Scyne Advisory, has cleared the final hurdle to begin operating independently of the embattled big four firm.
"We're pleased to receive the green light from the Foreign Investment Review Board for the transaction, and will now accelerate the final steps to completion," Adrian Loader, co-founder of Allegro Funds, said in a statement on Monday.
"Scyne Advisory is ready to go - we have strong governance in place, and we are set up well for a clean transition of clients and employees."
PwC Australia in June announced it had entered an exclusivity agreement with Allegro Funds to divest its federal and state government business for $1 in the wake of its tax leak scandal.
The private equity firm expects the sale to be complete on Wednesday.
The Department of Finance last month announced it would allow ongoing federal government contracts with PwC's public sector business to roll over to Scyne Advisory.
Finance, which is responsible for the Commonwealth's procurement framework, made the call after a review found the new firm had the "appropriate governance, accountability and ethical frameworks" to work with the government.
The new business will result in the transfer of about 130 former PwC partners and 1750 staff, though the parties say it will be fully independent of the big four firm.
The sale was triggered by revelations in January that the Tax Practitioner's Board had banned PwC Australia's former head of international tax Peter-John Collins from practising as a tax agent for two years.
The regulator alleged Mr Collins had shared confidential information from a Treasury briefing with other staff and partners. Treasury in May referred the matter to the Australian Federal Police, after it was revealed that 63 people had seen the information.
An independent review of the firm's culture by former Telstra chief executive officer Dr Ziggy Switkowski has since identified an aggressive focus on growth, and a "whatever it takes" attitude, which appeared to have contributed to integrity failures.
PwC Australia's chief executive officer Kevin Burrowes responded at the time that the firm was "deeply sorry for the misconduct that occurred and notes that significant repairs have been made and will continue to be made".
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