FCA drops Quindell probe as SFO investigates

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The FCA has dropped its probe into Quindell after the Serious Fraud Office launched a criminal investigation into the business and accounting practices at the insurance technology firm.

It is understood the decision was taken to avoid duplication between the two bodies.

The FCA launched its investigation into Quindell in June this year, while the SFO began a separate criminal probe on 5 August.

In a statement issued this morning, the FCA says: “In the light of the Serious Fraud Office’s decision to launch an investigation into the business and accounting practices at Quindell Plc, and following consultation with the SFO, the Financial Conduct Authority has decided to discontinue its own investigation with immediate effect.”

The investigation into Quindell concerns public statements made regarding its financial accounts during 2013 and 2014.

In May Quindell announced that PricewaterhouseCoopers had completed an independent review of a number of its accounting policies.

The review found that certain accounting policies adopted by the company, in respect of recognising revenue and deferring case acquisition costs in a number of the group’s disposed of businesses, were “largely acceptable but were at the aggressive end of acceptable practice”.

PwC also identified that some policies were not appropriate. Quindell’s own review confirmed PwC’s findings.