The FRC was investigating PwC for three years over its work with Barclays
The Financial Reporting Council has closed an investigation into PwC’s work with Barclays around client money reporting saying it was unlikely to make an “adverse finding”.
The three-year investigation started after the bank was fined £37.7m for failing to keep client money separate from its own.
The FRC investigated PwC’s reporting to the FSA on Barclays’ compliance with client money rules between 2007 and 2012.
A statement from the FRC says: “The executive counsel to the FRC has concluded that there is not a realistic prospect that a tribunal would make an adverse finding against PwC in respect of the matters within the scope of the investigation.”
The Financial Times reports a PwC spokesperson saying: “We co-operated fully during the FRC’s thorough investigation and are pleased that the FRC has closed it without any further action.”
In August, PwC was fined £5.1m by the FRC over its audit of RSM Tenon – which was acquired by Baker Tilly in 2013 before being bought by Towry a year later – ahead of the professional services firm going into administration.
In the same month the FRC fined the accounting firm £2.3m for mishandling the auditing of failed sub-prime lender Cattles and its subsidiary Welcome Financial Services.