Fresh investigation for PwC 24 December 2014London Reporter: Becky Butcher
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The Financial Reporting Council (FRC) has launched a second investigation under its Accountancy Scheme into PricewaterhouseCoopers’s (PwC’s) conduct in its capacity as auditor to Barclays Bank.
The decision to investigate follows the Financial Conduct Authority (FCA) final notice on Barclays Bank, published on 23 September 2014, imposing a record £37.7 million fine.
A previous Financial Services Authority (FSA) investigation had found failings in the bank’s investment banking division, which provided safe custody services to its affiliates, eligible counterparties and professional clients in connection with its product offerings within the division. £16.5 billion worth of clients’ custody assets were held at risk.
The investigation identified 95 external accounts that were not adequately protected in accordance with the FSA’s rules.
In December 2013, the FRC closed a separate investigation into PwC’s role as auditor over the period 1 December 2001 to 29 December 2009, in relation to the preparation of reports for the FSA about Barclays Capital Securities’s compliance with the FSA’s client asset rules, which govern the protection of client money.
Another investigation has also been launched into the roles of PwC and various members of the accountancy profession involved in the preparation, approval and audit of Tesco’s accounts.
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