• Register
Return to: Home > News > Fired up FRC issues record ban

Fired up FRC issues record ban

The UK’s Financial Reporting Council (FRC) has issued a record period of exclusion from the profession for three people.

Three former executives of AssetCo, a fire and rescue services business, have been excluded from the profession for committing misconduct in relation to the preparation and approval of the company’s financial statements for the financial years ended 31 March 2009 and 31 March 2010.

Former chief executive John Shannon was excluded for 16 years, former chief financial officer Raymond Flynn for 14 years, and former financial controller Matthew Boyle for 12 years.

Additionally, fines of £250,000 ($321,995), £150,000, and £100,000 were issued respectively.

As a result of the misconduct, AssetCo restated its financial statements in 2011, which showed a £146m reduction in assets, £25m reduction in profit. Significant loss was caused by the collapse in share price from 60p to 1.75p.

The FRC’s executive counsel brought 27 allegations of misconduct against Shannon, Flynn and Boyle before the tribunal. The tribunal, chaired by Bernard Eder, found misconduct in relation to all of them.

These included findings of dishonesty and failing to act in accordance with core standards of integrity, objectivity and competence, which related to dealing with company funds, the preparation of financial statements, and the recognition of fictitious assets and revenue. The tribunal also found that they had each misled the auditors, Grant Thornton UK.

The FRC’s interim executive counsel Claudia Mortimore said: “The misconduct of the three accountants in this case is the most serious the FRC has put before a tribunal. In addition to the financial harm caused to the company and to many investors, the actions of these individuals have damaged public confidence in the profession.

“The Tribunal has recognised this and it is reflected in the imposition of lengthy periods of exclusion, as well as substantial financial penalties. These sanctions should send a clear message that the manipulation of financial statements, and in particular dishonesty, will be dealt with robustly.”

Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.