FRC closes investigation into PwC over Barclays compliance

FRC closes investigation into PwC over Barclays compliance

The accountancy watchdog said the investigation was dropped as there was not a 'realistic prospect that a tribunal would make an adverse finding against PwC'

The Financial Reporting Council (FRC) has closed a three-year long investigation into PwC’s work as auditor for Barclays.

The accountancy watchdog said the investigation was dropped as there was not a “realistic prospect that a tribunal would make an adverse finding against PwC” in relation to the matters within the scope of the investigation.

The FRC launched a probe into PwC’s role in reporting on Barclays’ compliance with FSA’s client asset rules for the years ended 31 December 2007 to 31 December 2011. The investigation was sparked by revelations that the bank endangered £16.5bn of client funds by failing to keep it separate from its own money. This resulted in an at the time record fine of £37.7m in 2014 for the bank.

PwC responded: “We co-operated fully ​during the FRC​’s​ thorough ​investigation and are pleased that​ ​the FRC has closed it without any further action.”

In 2013 the FRC closed a separate investigation into PwC’s conduct as auditors of Barclays in relation to the preparation of reports to the FSA.

PwC acted as Barclays’ auditor for 120 years until 2016, when KPMG took over.

This follows news that the FRC dropped an investigation into KPMG’s audits of HBOS.

The FRC also dropped an investigation into PwC’s audits of Tesco earlier this year, making this the third high profile investigation into a Big Four firm to be dropped by the FRC.

Resources & Whitepapers

How to optimise your compliance lifecycle

How to optimise your compliance lifecycle

4m
The new rules of accounting

The new rules of accounting

4m
5 ways internal productivity can boost your profitability

5 ways internal productivity can boost your profitability

4m
Crushing the Four Barriers to Growth

Crushing the Four Barriers to Growth

4m

Related Articles

Exclusive: Interview with Sir Donald Brydon – "Last chance saloon" for audit

Accounting Firms Exclusive: Interview with Sir Donald Brydon – "Last chance saloon" for audit

3w Chris Jewers
Brydon Report: Industry reacts to findings and audit recommendations

Accounting Firms Brydon Report: Industry reacts to findings and audit recommendations

2m Chris Jewers
FRC extends Thomas Cook investigation to more statements audited by EY

Accounting Firms FRC extends Thomas Cook investigation to more statements audited by EY

2m Chris Jewers
Thomas Cook: Case for investigation to be assessed by FRC

Accounting Firms Thomas Cook: Case for investigation to be assessed by FRC

5m Chris Jewers
PwC accountant caught with 1700 upskirting images on phone

Accounting Firms PwC accountant caught with 1700 upskirting images on phone

7m Chris Jewers
FRC audit inspection finds no improvement on last year

Accounting Firms FRC audit inspection finds no improvement on last year

8m Chris Jewers
PwC forges maritime supply chain link with Pole Star

Accounting Firms PwC forges maritime supply chain link with Pole Star

1y Chris Warmoll, Writer
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2y Emma Smith, Managing Editor