Hearing regarding KPMG Audit plc and Richard Hinton relating to BNY Mellon
29 April 2019
A hearing of the Disciplinary Tribunal of the Financial Reporting Council ("FRC") will commence on Tuesday 21 May 2019 at 10.00 am to consider a Formal Complaint against (1) KPMG Audit Plc, a member firm of the ICAEW and (2) Richard Hinton, a partner of KPMG Audit Plc and a member of the ICAEW. The hearing will be limited to the consideration of any sanction(s) to be imposed upon KPMG Audit Plc and/or Richard Hinton. The hearing venue is The International Dispute Resolution Centre Limited, 70 Fleet Street, London EC4Y 1EU.
The Formal Complaint concerns the conduct of KPMG Audit Plc and Mr Hinton in relation to:
- The CASS (Client Asset Sourcebook) Audit in respect of the Bank of New York Mellon London Branch for the year ended 31 December 2011 (“FY2011”);
- The CASS Audit in respect of the Bank of New York Mellon (International) Limited for FY2011. The hearing relates to the investigation notified in FRC Notice PN 39 of 2015 and the delivery of a Formal Complaint in September 2018 in relation to KPMG Audit Plc and Mr Hinton.
Notes to editors:
- The FRC’s mission is to promote transparency and integrity in business. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.
- The FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest. In brief, the stages of the disciplinary process under the Accountancy Scheme are:
- Decision to investigate
- Decision whether to bring enforcement proceedings against Member Firm or Member and, if so decided, referral to Disciplinary Tribunal
- Tribunal hearing
- Determination and imposition of sanction and/or costs orders
Under the Accountancy Scheme the FRC can start a disciplinary investigation in one of two ways: (i) the professional bodies can refer cases to the FRC; and (ii) the FRC may decide of its own accord to investigate a matter. The Conduct Committee will consider each case identified or referred to it and decide whether or not the criteria for an investigation are met.
The criteria are specified in paragraph 5(1) of the Accountancy Scheme. A Member or Member Firm shall be liable to investigation under this Scheme only where, in the opinion of the Conduct Committee the matter raises or appears to raise important issues affecting the public interest in the United Kingdom and there are reasonable grounds to suspect that there may have been Misconduct or it appears that the Member or Member Firm has failed to comply with any of his or its obligations under paragraphs 14(1) or 14(2) of the Scheme.
Investigations are conducted by Executive Counsel and the Enforcement division.
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