• Register
Return to: Home > News > Advisory > Report claims PRA looking at KPMG UK viability

Report claims PRA looking at KPMG UK viability

The Bank of England’s (BoE) Prudential Regulation Authority (PRA) has reportedly probed the strength of KPMG’s UK business following a succession of corporate scandals.

The PRA, which is responsible for the regulation and supervision of banks, building societies, credit unions, insurers, and investment firms, was reported to have approached other regulators and financial institutions to see whether there are risks to KPMG’s capability.

KPMG is the auditor for a number of organisations which are under the supervision of the PRA and has also been the BoE’s auditor since 2008.

Three people who are said to be involved in the discussion told The Financial Times that the PRA had sought assurance on whether KPMG’s existing clients were planning to cease using KPMG’s services and if the firm was struggling to gain new business following the high-profile criticism of its work for Carillion and its work in South Africa.

Despite these reports the PRA said in a statement: “The PRA is not in discussion about the viability of any audit firm.”

KPMG UK chairman and partner issued a statement this morning: “KPMG is in robust financial health. KPMG is seeing outstanding growth right across our audit, tax and advisory arms, we have a strong balance sheet and are well funded with a growing pipeline.

“The bank of England has a legitimate duty to scrutinise the market. But they have not approached KPMG formally or informally. If they were to, we would be happy to reassure them of our robust financial health.”

International Accounting Bulletin contacted the UK’s Financial Reporting Council to see if the PRA had contacted them on this matter. At the time of publication the FRC had not offered on response.

Top Content

    The UK: uncertain waves rule Britannia

    he UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    Spain: looking to widen demand

    As Spanish accounting professionals prepare for new audit regulations, the Paul Golden asks what they need to do individually and at firm level to maintain and increase demand for their services.

    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.