KPMG faces £12.5m fine for faulty BYN Mellon reports
Financial Reporting Council attorney says the proposed fine is justified because KPMG’s conduct was ‘truly exceptional’
London — Accounting giant KPMG should be fined £12.5m or more for misconduct over reports on Bank of New York Mellon, a UK regulator said Tuesday. KPMG said the fine should be just a fraction of that size, at £1.4m. The Financial Reporting Council’s (FRC’s) request — and KPMG’s response — were outlined on Tuesday at a hearing in London, where a tribunal will decide what is an appropriate sanction for the case. KPMG, which has admitted misconduct, would get a 30% discount on the fine for co-operation with the regulator. The council’s proposed fine is an “extravagant” and “gargantuan” penalty, and the misconduct involved in the BNY Mellon case was unintentional and didn’t involve any criminality, KPMG lawyer Bankim Thanki said at the hearing. Financial Reporting Council attorney Raymond Cox said the proposed fine was justified because KPMG’s conduct was “truly exceptional”. The accounting firm in 2018 admitted misconduct in relation to reports it filed to UK regulators on the bank’s c...
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