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Treasury committee chairman demands HBOS audit investigation

Andrew Tyrie

Treasury committee chairman Andrew Tyrie has demanded an investigation into KPMG’s role as the auditor for collapsed bank HBOS.

During the preparation of a report that last month slammed the FSA for its failings in investigating the bank, the Financial Reporting Council was invited to probe KPMG’s work, but declined to do so.

Tyrie describes the accountancy watchdog’s decision as “a serious mistake”.

He says: “The shortcomings of the audit process were serious. As a result, Parliament’s specialist advisers concluded that the circumstances surrounding the audit, conducted by KPMG, deserved thorough scrutiny by the FRC.

“Given the findings of the full report, the accompanying report by Andrew Green QC into enforcement and the report of Parliament’s specialist advisers, confidence in the audit process will have taken a knock.

“It is now essential – in the interests of public confidence – that the FRC get on with this investigation, and without delay.”

Tyrie has written to both FRC chief executive Stephen Haddrill and Institute of Chartered Secretaries and Administrators chief executive Simon Osborne to press his case, raising concerns with the latter on poor quality of board minute taking.

He says: “More accurate and detailed board minutes could have provided the regulator and Parliament’s independent reviewers with the material needed better to assess how the Board came to its decisions – including whether the non-executive directors were performing their roles to the required standard.

“The public need to be assured that the seriously deficient minute taking practices of HBOS, exposed by this report and that of the [Treasury committee’s] specialist advisers, will not be repeated. Banks, particularly large banks, carry considerable conduct and prudential risk.”



HBOS report slams FSA over ‘flawed’ investigation

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FCA blasted over inability to fine HBOS execs

The FCA has been slammed after it admitted it was unable to fine any former HBOS executives over the bank’s collapse during the financial crisis. The regulator’s HBOS report is to be published later this week. It is expected to include a lengthy examination of why only one HBOS director, Peter Cummings, was fined in […]


FCA unable to fine HBOS execs

The FCA has confirmed it will not be able to issue fines to any former executives at HBOS, regardless of the conclusions of the report into its collapse to be published this week. The report is expected to include a lengthy examination of why only one HBOS director, Peter Cummings, was fined in the aftermath […]


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. Small Network Boss Charlie Plamer is banned by the FCA and fined 87k for relying on his complaince directors to do their jobs and yet who at HBOS senior level gets fined and banned?
    One rule for us and one rule for the F-pack and it’s mates.

  2. KPMGs reports were seriously flawed and one has to question why Crosby made such a fuss about the investigation into the appointment of Jo Dawson given their relationship and his position with the FSA at the time. It is time any establishment cover up is blown apart.

  3. And not before time Mr Tyrie !!!

    I wonder how John G-J slept last night ?

  4. Demanding is one thing but with no power to enforce such a demand, for what does it actually count? The Financial Reporting Council was “invited” to probe KPMG’s work, but declined to do so. So that’s that then, is it not?

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