View more on these topics

Accounting giant faces investigation over BNY Mellon FCA breach

FCA logo new 3 620x430

The Financial Reporting Council has launched an investigation into KPMG in relation to its role in the recent BNY Mellon client compliance failures.

The British accounting watchdog will look into the conduct of KPMG auditors in relation to BNY Mellon’s London branch and its compliance with the FCA’s client assets rules in the years between December 2007 and 2011.

In April, BNY Mellon, the world biggest custody bank, was fined £126m by the FCA for failing to comply with custody rules. The regulator took action against BNY Mellon’s London branch and its international division for failing to sufficiently record, reconcile and protect client custody assets.

The failings occurred as BNY Mellon used global platforms to manage safe custody assets, which did not make clear which entity of the behemoth company clients had contracted. This meant that the firm failed to meet its obligations under the FCA’s custody rules.

A KPMG spokesman says it will “cooperate fully with the FRC in its enquiries” and is ”committed to setting the highest standards in our work”.

BNY Mellon’s London branch was responsible for £1.3trn during the period of the breach and the international division was responsible for £236bn at the time.



Man jailed for role in £4.3m Ucis fraud

A man has been sentenced to prison for his role in an unauthorised collective investment scheme through three land banking companies. Adam Hawkins was sentenced to six years and nine months in jail at Southwark Crown Court today following the FCA’s Operation Cotton investigation into the scheme in which 110 investors lost £4.3m. Hawkins worked […]


Standard Life chief exec David Nish steps down

Standard Life chief executive David Nish is stepping down from the role after six years at the helm. Standard Life Investments chief executive Keith Skeoch will succeed Nish as chief executive when he leaves in August. Skeoch will continue to head up SLI in order to oversee the transition to whoever succeeds him. Nish has […]


Magnus Wheatley appointed MD in Charles Stanley shake-up

Charles Stanley Direct has shaken-up its management team, appointing Magnus Wheatley as managing director of the business. Mike Lilwall will stay as head of proposition for the Charles Stanley Direct business, as well as director of Charles Stanley Group. Wheatley was previously head of digital marketing and communications at Charles Stanley Group, and Joanne Vowles will take […]

FCA and PRA set out bankers’ bonus clawback rules

The FCA and the Prudential Regulation Authority have rolled back on plans to ban bonus “buyouts” as part of their latest rules on pay. The regulators first consulted last July on whether they could ban the practice where employers offer to buy the shares or options a prospective employee has accumulated under their current employer’s […]

Parental leave and pensions

Fiona Hanrahan  – Senior Product Insight and Technical Support Analyst We are often asked how parental leave impacts workplace pension schemes in terms of funding in general, auto enrolment and salary exchange. This article will explain each of these. How does parental leave impact the funding of workplace pension schemes? A member of a defined […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Oh yea? What about the revolving door between the Regulator and the Big Four? I find it hard to imagine that KPMG will suffer greatly as many at the Regulator have gone there and many still aspire to do so – not to mention those at KPMG who end up as regulators.

    Shares of Arthur Anderson? I doubt it.

Leave a comment