THE PROFESSION’S WATCHDOG has succeeded in taking Deloitte to a tribunal hearing over its role following the collapse of car maker MG Rover.
The disciplinary arm of the Financial Reporting Council (AADB) will see the firm for a pre-hearing meeting in early January with a tribunal set for 4 March 2013.
The AADB’s main concern is over the relationship of Deloitte with the “Phoenix Four”, a quartet of businessmen who led the purchase of MG Rover from BMW in 2000.
Deloitte and corporate finance partner Einollahi gave corporate finance advice to the Phoenix Four and MG Rover, as well as working with the car maker as its auditor. The AADB alleges they failed to adequately consider the public interest and to mitigate risks of conflicts.
The pre-hearing panel today decided that based on an inspection report at MG Rover a full tribunal hearing was necessary.
The tribunal will decide whether Deloitte had a conflict of interest in its role of advising MG Rover in a corporate finance capacity.
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