The Financial Reporting Council and MG Rover – a dose of reality injected into the sanctions regime?
Published 29 June 2015
Since reforms were introduced at the FRC in 2012, there has been a marked step change in the regulation of accountants and actuaries by the FRC, with changes in the Scheme Rules, publication of Guidance on Sanctions and a more pro-active regulatory approach, with a number of high fines imposed.
April 2015 saw publication of the Appeal Tribunal decision on sanctions concerning Deloitte and MG Rover, reducing the original £14m fine to just £3m. It represents encouraging news for members of the profession concerned that the original fine would prompt the FRC to seek unmerited large fines in future cases.
Whilst the Appeal Tribunal had (in January) upheld parts of the original Tribunal's decision, 8 of the 13 original findings were overturned. The original finding that there had been deliberate misconduct on the part of Deloitte was quashed, as was a severe sanction against the partner involved, whose exclusion from the profession was overturned.
See here for an explanation of the insurance issues surrounding Financial Reporting Council investigations.