KPMG has been appointed by the UK Financial
Services Authority and Swiss Financial Market Supervisory Authority
to investigate the events that lead to rogue trader Kweku Adoboli
losing $2bn in unauthorised trading at the Swiss investment bank
The Financial Times last week
reported Deloitte had received the nod to investigate UBS but the
International Accounting Bulletin was unable to verify
this claim with either regulator or Deloitte.
Today, the Financial Times published
a new article claiming KPMG had in fact been appointed. The FSA
confirmed this was the case to the International Accounting
Bulletin but would not be issuing a public statement on the
In a joint statement last week, the regulators
said a third party will investigate the details of the unauthorised
trading and the control failures which permitted the activity to
remain undetected. The investigation will also assess the overall
strength of UBS’s controls to prevent unauthorised or fraudulent
trading activity in its investment bank.
UBS’s board of directors have set up a
separate internal investigation to be led by the former JP Morgan
CFO David Sidwell.