A TRIBUNAL ruled yesterday that Deloitte fell short of ethical standards when advising MG Rover and four of its directors ahead of the car company’s collapse in 2005.
Deloitte lost its appeal against the Financial Reporting Council’s ruling and is facing an unlimited fine, to be set out as early as today, as well as a £1.75m bill for costs.
The tribunal agreed that Deloitte and former partner Maghsoud Einollahi failed to consider the public interest in their role as corporate advisers to the Phoenix Four directors, and failed to consider conflicts of interest between the directors and Rover.
The Big Four firm said it is considering another appeal, arguing that the decision could constrain the advice it can give its clients.
Deloitte claimed that its advice helped generate £650m for MG Rover and kept the firm afloat for five years after its rescue in 2000.