PwC pays $1m to settle Merrill Lynch compliance audit failure allegations

Oliver Gill
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PwC settled after neither admitting nor denying the charges (Source: Getty)

Accounting giant PwC has agreed to pay $1m (£750,000) to settle allegations of shortcomings in a compliance audit of Merrill Lynch.

The Public Company Accounting Oversight Board (PCAOB) – the US accounting regulator – said overnight that PwC settled the matter without admitting or denying the allegations.

PwC said in a statement: "We are pleased to have resolved the matter."

Read more: PwC settles $3bn MF Global negligence case

Last year Bank of America Merrill Lynch was ordered to pay $415m to settle charges from the Securities and Exchange Commission (SEC) it had failed to segregate client cash.

SEC rules, similar to many around the world, dictate banks must not bundle together client's cash with their own. The sector has come under increased scrutiny after the global financial crisis, which saw some clients lose cash as banks failed.

Rules also dictate external accountants must undertake regular client money audits, signing off banks are conducting business in appropriately.

Read more: PwC will keep its starring role at the Oscars – despite its 2017 blunder

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