CMA chair Tyrie was ‘forced to step down’ after row with directors June 28, 2020 The chairman of the UK’s competition watchdog was forced to step down three years early after a stand-off with the firm’s chief executive, according to reports. Lord Tyrie, who last week announced he would stand down as chairman of the Competition and Markets authority (CMA) in September three years earlier than planned, had fallen out [...]
Germany to shake up accounting industry following Wirecard collapse June 28, 2020 Germany is set to overhaul its accounting industry as part of measures to soften the fallout from the collapse of payments fintech Wirecard last week. Wirecard, which premiered on Germany’s main Dax index with a €24bn (£21.8bn) valuation just two years ago, filed for insolvency last week after auditors found a €1.9bn black hole in [...]
EY ‘failed to request Wirecard bank statements for three years’ June 26, 2020 EY failed to carry out a standard audit procedure on Wirecard for more than three years that could have uncovered colossal fraud at the fintech, it is claimed. The accounting firm, which has audited Wirecard for over a decade, has come under fire after the German fintech disclosed a €1.9bn black hole in its accounts. [...]
Softbank plans to sue EY over its role in Wirecard scandal June 26, 2020 Softbank is looking to sue EY over its role in the Wirecard scandal after investing in the embattled German firm last year. The Japanese company is looking to file a complaint against the accounting firm after Wirecard collapsed on Thursday owing creditors nearly $4bn, according to German newspaper Der Spiegel. Wirecard’s longtime auditor EY blamed [...]
Wirecard files for insolvency after disclosing €1.9bn financial hole June 25, 2020 Wirecard has filed for insolvency after disclosing a €1.9bn financial hole in its accounts. Shares in the firm were suspended by the Frankfurt Stock Exchange before the announcement. Last week shares in the firm fell by 90 per cent after auditor EY refused to sign off Wirecard’s 2019 accounts. In a statement today, the embattled [...]
Former Wirecard boss Markus Braun released from custody, says lawyer June 24, 2020 Former Wirecard chief executive Markus Braun, who was arrested on suspicion of falsifying the company’s accounts and market manipulation, has been released from custody. Braun was released after paying his bail of €5m (£4.5m), his lawyer told Reuters. A German news agency had earlier reported that the former boss of the payments company had been [...]
Accounting watchdog investigates London Capital & Finance audits June 24, 2020 The accounting watchdog has launched three investigations into audits of collapsed mini-bond seller London Capital & Finance (LCF). The Financial Reporting Council (FRC) will investigate audits of the investment firm carried out by Oliver Clive & Co., PwC, and EY. LCF went into administration in January 2019, leaving 11,600 investors facing losses of up to [...]
Staycation nation: Johnson urges public to take a UK holiday June 23, 2020 Prime Minister Boris Johnson today gave the green light for hotels, B&Bs and campsites in the UK to reopen from 4 July, and urged the public to revitalise the hospitality industry by taking a “staycation” within the UK. In a major easing of social distancing rules, the PM today provided a lifeline for the hospitality [...]
Former Wirecard boss arrested as creditors hunt missing €1.9bn June 23, 2020 Wirecard’s former boss was arrested on Tuesday on suspicion of falsifying accounts and manipulating markets after the German payments firm disclosed a €1.9bn (£1.72bn) hole in its balance sheet. Markus Braun turned himself in to prosecutors in Munich on Monday evening after traveling from Vienna. He was later released from custody on a €5m bail. [...]
The risks are elevated, but investors have faith UK financial services can weather the storm June 23, 2020 The mood music in Brussels has changed over the last few weeks — and the financial services sector is back in the spotlight. In recent negotiations, the EU explicitly challenged the notion that Britain will be able to “cherry-pick” the benefits of the Single Market and retain its strategic position in financial services post-Brexit. With [...]