FSA regulation has forced Deloitte to close down part of its business insurance consulting (BIC) division.
A market source said: "Deloitte has enough to worry about FSA regulation of its core accounting practice. It didn't want to bother with the hassles of regulation on its claims consulting side."
The firm is understood to be winding down the part of the division that negotiates and advises on policy matters in the case of large losses.
A source close to Deloitte said the decision was based on "commercial" reasons.
"It is not a core area."BIC director Angus Tucker is to move to the forensic and investigation services division of Grant Thornton.
Deloitte declined to comment.
