PracticeConsultingJDS inquiry will not investigate Former Versailles FD

JDS inquiry will not investigate Former Versailles FD

Former Versailles finance director Frederick Clough will not be investigated by the professions's senior watchdog as he is thought not to be a registered chartered accountant.

While the Joint Disciplinary Scheme is looking into the role of accountants and auditors who may have had in the collapse of the troubled trade finance company, Clough will not be grilled as he is not a member of a chartered accountancy institute and so does not subscribe to the scheme.

Following a report from the English ICA, JDS executive counsel Chris Dickson announced he would step in earlier this week. Under the scheme, the professional and business conduct of members and member firms can be investigated in matters giving rise to public concern.

Nunn Hayward, the original auditors for the firm, is likely to be questioned, as will any chartered accountants who worked at Versailles.

After Dickson concludes his investigation, he will decide whether there are grounds for complaint to be heard by an independent Joint Disciplinary Tribunal. Up to £100m was alleged to have disappeared from the accounts of the finance firm.

A JDS statement said: ‘The referral should not be construed as meaning either that a view has been formed that a prima facia case exists against any member or member firm or that such a finding is likely.’

The move follows an inquiry into accounting irregularities at Versailles which was extended to address fears that some of the transactions underlying the company’s £230m turnover may have been counted twice.

Clough, meanwhile, is facing a claim for £50m after receiver PricewaterhouseCoopers served him with a writ.

The Serious Fraud Office is conducting its own inquiry.

Joint Disciplinary Scheme to investigate trade finance group Versailles collapse

Former Versailles finance director hit with £50m writ

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