FRC fined PwC and EY £4.9m and £4.4m for auditing LCF, a collapsed investment group.
The Financial Reporting Council (FRC) has fined PwC £4.9m and EY £4.4m for their audits of London Capital & Finance (LCF), a collapsed investment group. Both firms admitted multiple breaches, with the FRC stating that there was a significant failure to gain a proper understanding of LCF's business. LCF collapsed in 2019, leaving around 12,000 people owing £237m, many of whom were elderly. The Serious Fraud Office is currently investigating whether to bring fraud charges against those who ran LCF.
May 07, 2024
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