FRC fines PwC, EY for London Capital & Finance audit failings
By 
Kyle Brasseur2024-05-07T18:58:00
Big Four firms PwC and EY were each penalized by the Financial Reporting Council (FRC) for alleged shortcomings during their respective audits at collapsed investment firm London Capital & Finance (LCF).
Both audit firms were assessed fines of 7 million pounds (U.S. $8.8 million), the FRC announced Tuesday. PwC earned a discount of 30 percent for admissions and early disposal and will pay £4.9 million (U.S. $6.1 million), while EY was awarded the same plus an additional 10 percent off for “exceptional” cooperation down to about £4.4 million (U.S. $5.5 million).
LCF sold £236 million (U.S. $295 million) worth of bonds promising investor returns of 6.5 to 8 percent a year. The investment firm entered administration in January 2019, with more than 11,000 investors suffering significant losses.
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