The U.K.’s accounting watchdog Thursday ordered KPMG to pay a £13 million (U.S. $18 million) fine for “breaches of the principles of integrity and objectivity” in its advisory role regarding the 2011 sale of mattress company Silentnight to U.S. private equity firm HIG Capital. A former KPMG partner was also sanctioned.
The Financial Reporting Council (FRC) announced it had “severely reprimanded” KPMG and ordered the Big Four firm to appoint an independent reviewer to determine the root cause of its alleged failings. In addition, KPMG will pay £2.45 million (U.S. $3.4 million) toward investigation costs and £305,814 (U.S. $426,000) for the cost of an independent disciplinary tribunal.
