Farepak report passed to AADB

The government has forwarded an investigation into the demise of Farepak to
the profession’s disciplinary body the
Accountancy and Actuarial
Discipline Board

The Companies Act investigation into the affair was concluded this week, with
the government saying it was considering whether to take any legal action.

Junior business minister Gareth Thomas said: ‘Legal advice is being obtained
on the report to decide what further action is merited.’

He said that the report could not be published under the Companies Act until
any open court proceedings took place but he said decisions on prosecution would
be swift.

The AADB is already looking into the conduct of accountants involved. There
has been no indication as to who the AADB is looking at specifically.

Newcastle Central MP Jim Cousins ­ a member of the Commons Treasury Committee
­ said: ‘I am pleased that the report has been referred to the AADB… I think
this will be a big test as to the AADB’s effectiveness.’

Related reading