• Register
Return to: Home > News > Standards > Deloitte fined £14m for MG Rover advisory work

Deloitte fined £14m for MG Rover advisory work

The UK Financial Reporting Council (FRC) tribunal has fined Deloitte UK with a record fine of £14m for failing to manage conflicts of interest in its advice to British carmaker MG Rover Group regarding its collapse in 2005.

The FRC also fined Deloitte UK's former partner, Maghsoud Einollahi, with £250,000 and excluded him from the profession for three years.

These sanctions follow the tribunal's ruling in July, which found Deloitte UK and Einollahi advisory work for MG Rover Group in breach of the Institute of Chartered Accountants in England and Wales's code of ethics.

FRC executive director conduct Paul George said: "The final report of the tribunal provides a clear analysis of the case and how it reached its conclusions. It should be essential reading for all members of the profession. The sanctions imposed are in line with the FRC's aim to ensure penalties are proportionate and have the necessary deterrent effect to prevent misconduct and bolster public and market confidence."

Deloitte UK acknowledged it was dissatisfied with the outcome of the tribunal and disagreed with its main conclusions. "We are disappointed that the efforts we and others made did not successfully secure the long term future of the MG Rover Group" a spokesperson said.
"Over the coming weeks, we will continue our discussions with relevant stakeholders and professional bodies about the potentially wide ranging impact on the profession and wider business community of the tribunal findings."

Related link:

FRC tribunal finds Deloitte UK in breach of standards

 

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.