Maxwell – PwC faces further JDS tribunals

The Joint Disciplinary Scheme is forming a tribunal to hear complaints against two Coopers partners relating to the collapse of Barings.

It is also investigating the collapse of BCCI, of which the then Price Waterhouse was an auditor, although it has not yet decided whether to proceed with any complaints.

The censure, fine of #1.2m and costs of #2.1m imposed on PwC as a result of the Maxwell affair, are by far the largest in the history of the JDS, but the measures have not satisfied some of the profession’s critics.

Backbench MP Austin Mitchell said: ‘It goes a long way to demonstrate the futility of the JDS and the need for independent regulation.’

He also questioned why no-one within PwC had been disqualified and asked whether insurers would pay the costs, a suggestion the firm denies. ‘If the real problem is the procedures and standards within Coopers, why isn’t there an inquiry into (them)?’ he added.

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