*UPDATED PRESS NOTICE
The Financial Reporting Council announces the outcome of the disciplinary hearing against William Rollason, a member of the ICAEW, who was the Chief Executive of European Home Retail plc (EHR) and was a director of Farepak Foods and Gifts Limited (Farepak).
A settlement was agreed between the Executive Counsel to the FRC, Gareth Rees QC, and Mr Rollason last Friday 7 June in which Mr Rollason accepted that he acted recklessly in a way that was contrary to the Fundamental Principle of Integrity (as set out in the ICAEW Guide to Professional Ethics) in the following ways:
by drafting and distributing to his fellow directors of EHR a memorandum which could mislead as it did not reflect the financial position of EHR and;
by signing a standard form letter on behalf of EHR to Farepak stating that “it [EHR] will continue to support Farepak Food and Gifts Limited to enable it to meet its liabilities as they fall due” in the knowledge that the letter would be relied on by Farepak’s auditors in connection with Farepak’s financial statements for 2004-5.
The Tribunal met today (11 June 2013) to consider what sanctions should be handed down for Mr Rollason’s misconduct.
Having heard submissions from both parties, the Tribunal imposed the following sanctions on Mr Rollason:
A Severe Reprimand
A fine of £15,000
A contribution of £50,000 towards the FRC’s costs
Gareth Rees QC, the Executive Counsel to the FRC said:
“The FRC is pleased with the outcome of this case. This case shows the high level of integrity expected from chartered accountants who take up executive positions in business. It is vital that chartered accountants in business comply with good governance to ensure the accuracy of financial statements.”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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