Advisers are calling for FCA chairman John Griffith-Jones to face further investigation over his role in auditing HBOS when partner at accountancy firm KPMG.
Last week, the parliamentary commission on banking standards slammed the “catastrophic failure” of HBOS claiming it would have collapsed even without the credit crunch.
The FSA decided not to investigate HBOS auditors, leaving the matter to the Financial Reporting Council. The FRC, which monitors auditors, will consider an investigation into KPMG’s HBOS audits once the FCA publishes its own report later this year.
Griffith-Jones worked for KPMG from 1975 to 2012 in auditing and corporate finance, most recently as joint chairman of KPMG Europe.
Labour MP and Treasury select committee member Teresa Pearce says: “The problem with all these appointments is its like musical chairs, its the same guys moving around from post to post. You cannot change the culture if you just keep reshuffling the pack. We need real diversity to bring in fresh thinking.”
Facts and Figures Financial Planners managing director Simon Webster says: “His involvement should be investigated and if he was found to have signed off on the toxic HBOS audit report in any way he should resign or be fired.”
Forty Two Wealth Management owner Alan Dick says: “There are enough concerns for this to be investigated further. If he conducted an audit and he signed off on it then he should resign but just because he was chairman does not mean he went through every audit.”
An FCA spokeswoman says: “John Griffith-Jones was subject to a rigorous appointment process by HM Treasury, and had a pre-commencement hearing with the Treasury select committee, to assess his suitability for the role.
“John does not sit on the board sub-committee of the FCA which is tasked with overseeing the HBOS report. The report will also be examined by three independent reviewers, who were appointed by the TSC, to ensure that it is a true representation of the facts.”