Coopers fined in Barings disciplinary

Coopers fined in Barings disciplinary

An appeal tribunal for the profession's senior watchdog today upheld its findings against Coopers & Lybrand for the firm's role as auditor in the collapse of Barings.

A Joint Discplinary Scheme statement published today said: ‘As the Appeal Tribunal said of them, the belief that Mr Leeson’s trading activities “posed little (or no) risk to the Barings Group, but yielded very good returns, is implausible and in our view, demonstrates a degree of ignorance of market reality that totally lacks credibility.”‘

Complaints against Coopers audit engagement partner Andrew Charles Turner were however dismissed. And the original fine against Coopers was reduced by the appeal tribunal from £1m to £250,000. A fine against Gareth Maldwyn Davies, also a Coopers partner, was reduced from £65,000 to £25,000.

Barings bank collapsed in 1995 amid unauthorised transactions in excess of £800m by rogue trader Nick Leeson.

A statement issued by the PricewaterhouseCoopers said: ‘We are disappointed by the tribunal findings. We feel it is important to reemphasise that the Barings collapse was due to fraud and management failure in which Coopers & Lybrand played no part.’The appeal tribunal has confirmed that Coopers & Lybrand could not have prevented the collapse of Barings and that the firm carried out much skilled and detailed work to a high standard.’

Related Articles

It’s not just the potential of women at stake, it’s the potential of accountancy

Accounting Firms It’s not just the potential of women at stake, it’s the potential of accountancy

4d Jean Stephens, RSM International
PwC to net £50m from Carillion insolvency

Accounting Firms PwC to net £50m from Carillion insolvency

2w Alia Shoaib, Reporter
Mercer & Hole makes two new appointments

Accounting Firms Mercer & Hole makes two new appointments

3w Emma Smith, Managing Editor
Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

4w Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

2m Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

2m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

2m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter