FRC considers KPMG probe into auditing of HBOS accounts

The Financial Reporting Council (FRC) is considering launching a probe into KPMG's handling of the accounts of failed bank HBOS. Last night KPMG parted ways as the auditor of Herbalife and Skechers. An FRC official:

We don't currently have it under investigation but we are monitoring the situation quite closely with everything that is going on at the moment, and then we will take a decision whether or not to start an investigation.

The FRC will consider the Parliamentary Commission and FCA reports to identify whether there is a case for an investigation under our powers.