Watchdog says accountancy firms failing to challenge management of firms they audit November 5, 2019 Audit watchdog the Financial Reporting Council (FRC) today warned that the top firms were failing to be robust enough in challenging management of the companies they audit. The audit sector is in the political and regulatory spotlight following company failures such as the collapse of travel agent Thomas Cook and outsourcer Carillion. The FRC today [...]
Big Four firm KPMG denies reports of partner cuts amid cost-cutting drive November 3, 2019 KPMG has denied reports that it is gearing up to cut 10 per cent of its UK partners, as the Big Four accountant presses on with a significant cost overhaul. The company is said to be preparing to let about 65 partners go by Christmas, after a review of individual performance, according to the Financial [...]
Judgment imminent in Lloyds’ shareholders £600m financial crisis-era group action October 31, 2019 The long-awaited judgment in a financial crisis-era shareholder action against Lloyds Banking Group and five former directors of Lloyds TSB is expected imminently, according to people close to the case. The £600m claim focused on Lloyds TSB’s acquisition of HBOS in autumn 2008 at the height of the financial crisis. The claimant group of 300 [...]
All Grant Thornton’s scandals are denting partners’ profits October 31, 2019 Partner profit at embattled accountancy firm Grant Thornton UK dropped this year after the firm was embroiled in a series of scandals and its chief executive stepped down after an internal coup. In a year to forget for the UK’s sixth-largest accountancy firm, partner profits fell nearly six per cent to £323,000 from £343,000. The [...]
Citi chief political analyst Tina Fordham moves to new boutique law firm Avonhurst October 31, 2019 Investment bank Citi’s chief global political analyst Tina Fordham is moving to new boutique law firm Avonhurst as a partner and head of global political strategy, the firm announced today. The hire is an unusual one as law firms have not traditionally advised their clients on political risk. Speaking to City A.M. Fordham said: “It [...]
Daiwa Capital Markets faces $150m bill after Supreme Court appeal loss October 30, 2019 Daiwa Capital Markets Europe faces a $150m (£116m) bill after losing an appeal to the UK Supreme Court today. The court ruled in favour of Singularis Holdings – now in liquidation – in a claim for negligence against the English subsidiary of the Japanese bank. The case relates to a payment Daiwa made at the [...]
Audit watchdog calls for better risk forecasts to improve public trust in business October 30, 2019 The audit watchdog today called for firms to provide more information on strategic risks to help improve public trust in business. High-profile failures like travel agent Thomas Cook and outsourcer Carillion have led to fingers pointed at companies and their auditors with questions raised over why risks were not set out in the company’s accounts. [...]
What problems do savers face when transferring their pensions? October 30, 2019 If you want to transfer your pension to another company, you could find it quicker to fly to Mars. That’s not an exaggeration – in some instances, it can take six months for your provider to process your request, so it’s hardly surprising that some people simply don’t bother trying to move their money at [...]
DEBATE: As the Big Four firms continue to dominate audit, have government efforts so far to reform the market failed? October 30, 2019 As the Big Four firms continue to dominate audit, have government efforts so far to reform the market failed? David Herbinet, global head of audit at Mazars, says YES. The Financial Reporting Council’s latest figures show that, despite all efforts, the audit market is actually narrowing. A diverse market is vital for audit quality and [...]
After the Woodford saga, here are four signs that your fund is in trouble October 29, 2019 The industry is still reeling from the news of the Woodford fund closure, with investors left in limbo as to when they will get their money back. But the saga has also brought two more general considerations into sharp focus: first, whether star fund managers are the answer at all, and second, what red flags [...]