PWC has changed the way it trains its staff following the record fine dished out by accounting’s watchdog.
The firm was fined £1.4m by the Accounting and Actuarial Discipline Board (AADB) for failing to flag up non-segregation of JP Morgan Securities Limited’s client assets for seven years to 2008.
A spokesman for PwC said: “We are pleased that this matter has now been concluded. We regret that one aspect of our work on the private client money report to the FSA fell beneath our usual high standards.
“When the issue was identified, and before any complaint had arisen, we took action to ensure that staff received additional training in the client monies area.”
PwC will now provide additional training to all staff that work on client money accounts.
The fine was issued by an independent tribunal following a complaint from the Financial Reporting Council’s regulatory arm the AADB.
It is the largest fine ever handed out by the AADB and is closer to the figure suggested by PwC for its reprimand – of between £500,000 and £1m, compared to other figures bandied around during the process of up to £44m.
The tribunal acknowledged PwC’s prompt admission of responsibility and a timely plea of guilty; steps taken to remedy deficiencies; and a good record as being material in this case.
However, it also raised concerns that no PwC partner was named in relation to the audit work or had been proceeded against by the AADB’s executive counsel.
A statement from PwC said: “Regarding the partner not having been named or proceeded against, the simple fact is that the AADB chose not to pursue any individuals.”
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