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.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
