View more on these topics

Advisers call for further investigation into FCA chair over HBOS audit

John-Griffith-Jones-480.jpg

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. RegulatorSaurusRex 10th April 2013 at 10:07 am

    John Tiner escaped days before the collapse of NR, he hasn’t been punished nor has he paid any price for being wrong.

    Why is that?

  2. Well put—–
    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.”
    The need is to replace these kind of people with others who do not have a finger in many pies!!

  3. RSR @1007

    Might I suggest it is because the previous regulator had no processes in place to deal with wrong-doing at the executive level. Moreover, it is very apparent to us lesser mortals that the FSA simply had no idea of what was happening at any time. In short, regulatory incompetency coumpounding commercial inadequacies.

  4. If a seventeen year old girl has the integrity to resign over a few tweets she made as a fourteen year old the guys who presided over this debacle, banks and regulators, really need to look at themselves.

    Maybe she could start a career giving them some lessons on ethics.

  5. You’ve just got to love this country.

    Nowhere else can make a whole industry out reports, investigations inquiries and reviews quite like the UK. It’s not just financial services, the answer to everything “we must have a full and far reaching investigation/review/inquiry to find the facts and learn from our mistakes.”

    Do we ever learn from our mistakes? Does anything ever change?

    NO! The same people not only take us all for a ride with the merry go round of jobs for the boys, but, they’ve now invented a sideline of employing more cronies to produce reports, carry out investigations or to run an inquiry.

    It’s no excuse to say well if he didn’t personally sign off the audit he can’t be held responsible. He’s the top man, he’s taking the big salary. If he didn’t know then he should have made it his job to know. Do any of you let other people run amok in the business that you run?

    None of these people know their ar$e from their elbow. They just have nice manners and went to the right schools.

  6. @ Phil Sipocz
    Never mind at least “lessons will be learned, going forward”

  7. “To think we buy gowns lined with ermine,
    For dolts that can’t or won’t determine,
    Whats best to rid us of our vermin! …”

    I didn’t write that – Robert browning did.

  8. PWC were the auditors for in Luxembourg I think for Keydata owned Life mark. PWC put Key data in the sh## with HMRC over a still being negotiated tax error. KPMG appointed as admistrators of Life mark. Wind back several years and Key data claimed KPMG developed the model they were using and whilst KPMG got the FSA to remove it from later literature it has never been confirmed if the model was developed by KPMG but their name used without permission

Leave a comment