• Register
Return to: Home > News > Regulation > Mazars UK and partner admit to "significant" conduct shortcomings in disciplinary case

Mazars UK and partner admit to "significant" conduct shortcomings in disciplinary case

A disciplinary case against Mazars UK (Mazars) and Richard Karmel, a partner of the firm, has resulted in both defendants admitting their conduct "fell significantly short" of standards reasonably expected of a member firm and member, according to the UK Financial Reporting Council (FRC).

A formal complaint was lodged by the FRC in relation to the advice provided by Mazars UK and Karmel's to the Trustee of the First Quench Pension Fund in relation to a proposed replacement of First Quench Retailing Limited as the sponsoring employer.

A settlement between executive counsel to the FRC Gareth Rees QC, Mazars UK and Karmel was approved by the FRC tribunal on 25 July. It imposed a £750,000 ($1,242,488) fine for Mazars UK, as well as a £1,120,000 fee to cover costs incurred by executive counsel.

Karmel was also fined £50,000, as well as having to pay £80,000 in counsel fees.

Both parties also received a "severe reprimand".

FRC executive director of conduct Paul George said: "This outcome sends a clear message to all accountants and accountancy firms carrying out advisory work that not only do they have a responsibility to carry out their professional work diligently and in accordance with the applicable technical standards but that they must consider the different and opposing commercial interests of all those involved."

He added: "Accountants must not allow undue influence of others to override their professional judgements and they must have a clear understanding of who their client actually is. The result in this case demonstrates our commitment to ensure the standards of the profession are upheld so that it can justifiably secure public confidence."

Related links:

Mazars UK

FRC

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    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.