22 May 2019
Britain’s accounting watchdog has proposed fining KPMG 12.5 million pounds ($16 million) for errors in checking whether BNY Mellon bank was complying with rules for safeguarding client assets.
The Financial Reporting Council (FRC) said it has asked an independent disciplinary tribunal on Tuesday to levy the fine, a record for the watchdog if confirmed.
KPMG and one of its partners admitted to serious failings last September, and tribunal hearing was limited to sanctions.
KPMG said it accepts and regrets that some of its work for BNY Mellon’s London branch in the year ended December 2011 did not fully reflect all aspects of official guidance from the FRC.
“We are committed to cooperating with our regulator to bring these historic cases to conclusion as swiftly as possible,” KPMG said on Tuesday.
By Huw Jones, Reuters, 21 May 2019
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