• Register
Return to: Home > News > Big Four > FRC launces second investigation into PwC UK this week

FRC launces second investigation into PwC UK this week

The UK's Financial Reporting Council (FRC) has launched an investigation into the conduct of PwC UK as auditor to Barclays Bank.

The investigation relates specifically to PwC's role in reporting to the UK Financial Services Authority (FSA) on the bank's compliance with FSA client asset rules between 2007 and 2011.

The FCA's decision to investigate follows the 23 September 2014 publication of a Final Notice on Barclays Bank.

In the notice, the FCA announced the imposition of a financial penalty of £37,745,000 ($58,748,020) on the bank, discounted 30% following a settlement from the original fine of £53,921,619, for failing to safeguard client assets while contracting with external custodians.

The notice was a result of an investigation that showed Barclays Bank to have contravened the Authority's client asset rules by failing to notify the FSA on time of the amount of client money and the highest total value of client assets in its possession.

The investigation into PwC announced today will pertain to the firm's role in Barclays Bank's failing to report the asset information.

It follows the announcement yesterday that the FRC is to investigate PwC UK over its role in the accounting blunder currently engulfing British grocery giant Tesco.

In May this year, Barclays announced it would be replacing PwC as its auditor by as early as 2016, marking the end of a 120-year relationship.

PwC, which has been Barclays' auditor since 1896, will not be invited to participate in the bank's next tender, in a decision is said to be aimed at pre-empting upcoming regulatory changes around audit rotation.

PwC said it will be cooperating fully with the FRC in its enquiries.

Related articles:

FRC to investigate PwC UK over Tesco accounting blunder

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    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.