• Register
Return to: Home > News > KPMG partner to face disciplinary hearing over audit of BNY Mellon

KPMG partner to face disciplinary hearing over audit of BNY Mellon

The UK’s Financial Reporting Council’s (FRC) is launching a hearing of its disciplinary tribunal on 21 May to consider formal action against KPMG and one of its partners, Richard Hinton, in connection to their of audit of the Bank of New York Mellon (BNY Mellon).

The hearing will consider whether sanctions are to be made against KPMG or Hinton in relation to their client asset sourcebook (CASS) audit of BNY Mellon London branch and BNY Mellon International for the year ended 31 December 2011.

KPMG and Hinton admitted to misconduct in relation to the audits in September 2018. They admitted that they failed to give adequate consideration as to whether the records of custody relationships maintained by BNY Mellon Group were compliant with CASS rules.

At the time a KPMG spokesperson said: “In 2011, the FRC issued new guidance applicable to Client Assets Reports. We accept and regret that our work did not fully reflect all aspects of this new guidance.  Since that time, there has been further fundamental change in the regulatory environment and we have significantly enhanced our CASS procedures and training to reflect this.

“We have cooperated fully throughout the investigation. In this instance we could not agree with the FRC on the level of appropriate sanctions and these will now be determined by an independent tribunal.”

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    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.