MPs turn up the heat on FRC over KPMG enquiry

 
Billy Bambrough
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KPMG gave HBOS a clean bill of health shortly before it had to be bailed out by Lloyds Bank and the UK tax payer in 2008 (Source: Getty)

Influential MP and chairman of the Treasury select committee (TSC) Andrew Tyrie has increased the pressure on the accountancy watchdog over its supervision of big four auditor KPMG’s role in the collapse of HBOS.

Last month the Financial Reporting Council said it would look into whether to open an investigation against KPMG, having previously decided not to in 2013.

KPMG gave HBOS a clean bill of health shortly before it had to be bailed out by Lloyds Bank and the UK tax payer in 2008.Tyrie has written to chief executive of the Financial Reporting Council (FRC) Stephen Haddrill to ask “the scope, independence and rigour of these initial enquiries.”

The regulator made the decision to reconsider its stance after the Bank of England and the Financial Conduct Authority published a report criticising those involved in the failure of HBOS. Tyrie said: “The Committee will be watching the FRC’s work closely.”

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