Regulator fines Deloitte £14m over MG Rover fiasco

Regulators have issued Deloitte a £14m fine and a severe reprimand for matters relating to their role as advisers to MG Rover during its collapse in 2005 (release).

The accountancy firm advised four of Rover's directors - the Phoenix Four - who had taken over the company for £10m five years before its collapse.

Mr Maghsoud Einollahi, a partner at Deloitte, has been excluded from the profession for three years and received a fine of £250,000 from the Financial Reporting Council (FRC).

From this March:

The FRC contends “clear conflicts of interests”, and that Deloitte “failed to safeguard [its] objectivity”.

Deloitte said in a statement “there is no basis for the allegations”.

(Full article)

Paul George, executive director conduct of the FRC said:

The sanctions imposed are in line with the FRC’s aim to ensure penalties are proportionate and have the necessary deterrent effect to prevent misconduct and bolster public and market confidence.

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