KPMG UK has been referred to the UK Financial
Reporting Council (FRC) over its work at HBOS leading up to the
bank’s bailout. KPMG audited and produced special reports for
A complaint has been filed by HBOS former head
of risk turned whistleblower Paul Moore.
Moore, a former KPMG partner, said he was
sacked by former HBOS chief executive James Crosby following his
warning that the bank’s lending policy had become dangerously
overheated, according to The Telegraph.
But in a 2005 report, KPMG’s forensic team
stated Moore was fired because of alleged personality clashes.
Moore is understood to have contacted KPMG
chairman and senior partner John Griffith-Jones to request an
apology for KPMG’s role in the investigation of his sacking,
The Telegraph said. Moore is believed to have requested
KPMG donate to charity fees paid to it for its part in the
KPMG released a statement defending the
“quality of our work at HBOS”.
The FRC declined to comment on the
The complaint comes a week after former head
of HBOS’s corporate bank, Peter Cummings, was handed down a
seven-figure fine by the Financial Services Authority for his part
in the collapse of the bank. Cummings is contesting the fine.