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Regulators under pressure

MPs want review of KPMG’s role in HBOS failure

Bank of ScotlandA powerful committee of MPs is demanding a review of the decision not take action against accountancy firm KPMG over its audit of failed bank HBOS.

Andrew Tyrie, chairman of the Treasury Select Committee has written to the Financial Reporting Council, the accountancy regulator, calling on it to look again at KPMG’s role auditing the bank’s accounts.

The letter follows a report by Andrew Green QC into the failure of the bank.

In the letter, which has been seen by a national newspaper, he says: “Were the FRC to remain of the view that an investigation was not justified, then its decision would, in turn, warrant detailed scrutiny.”

The FRC has been criticised previously for its soft-touch regulation of the accountancy profession.

It is chaired by Sir Win Bischoff, a former chairman of Lloyds, which rescued HBOS in 2008, a year before he joined.

The FRC is said to have “noted the letter’s contents”.

 

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