RegulationRegulatory BodiesDeloitte/MG Rover tribunal begins

Deloitte/MG Rover tribunal begins

FRC tribunal to determine if Deloitte had a conflict of interest in advising the Phoenix Four which bought MG Rover begins today

Deloitte/MG Rover tribunal begins

THE PROFESSIONS’ WATCHDOG has begun a tribunal involving Deloitte and a Deloitte partner on advice provided to the Phoneix Four, which bought MG Rover prior to its collapse.

The tribunal between the disciplinary arm of the Financial Reporting Council (FRC) and the firm and a senior partner begins today.

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 Maghsoud 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 disciplinary panel will hear opening statements from both the FRC and Deloitte this week. Accountancy Age understands that the hearing is due to last about four weeks with material witnesses for both sides to be heard throughout the process.

It should be decided by the end of the process whether Deloitte had a conflict of interest in its role of advising MG Rover in a corporate finance capacity.

John Towers, Nick Stephenson, John Edwards and Peter Beale were known as the Phoenix Four and bought the carmaker for about £10 in 2000. They had planned to turn the business around but unfortunately five years later the company collapsed into administration making about 6,5000 staff redundant and with losses of nearly £1bn.  

Related Articles

Ex-RSM Tenon CEO fined; ex-FD and PwC face complaints over its accounting

Accounting Standards Ex-RSM Tenon CEO fined; ex-FD and PwC face complaints over its accounting

10m Kevin Reed, Writer
Sports Direct implements FRC corrections in annual reporting

Accounting Standards Sports Direct implements FRC corrections in annual reporting

10m Stephanie Wix, Writer
CIIA appoints ex-FRC chief Paul Boyle as president

Company News CIIA appoints ex-FRC chief Paul Boyle as president

11m Stephanie Wix, Writer
Record fine for Deloitte and audit partner over Aero misconduct

Accounting Standards Record fine for Deloitte and audit partner over Aero misconduct

11m Stephanie Wix, Writer
Cashflow statement improvements targeted by watchdog

Accounting Standards Cashflow statement improvements targeted by watchdog

1y Stephanie Wix, Writer
FRC appoints former ICAEW president to its board

People Practice FRC appoints former ICAEW president to its board

11m Stephanie Wix, Writer
Watchdog launches audit investigation into Sports Direct

Accounting Firms Watchdog launches audit investigation into Sports Direct

11m Stephanie Wix, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer