News December 2013 Investigation into PwC as auditors to Barclays Capital Securities Limited

Investigation into PwC as auditors to Barclays Capital Securities Limited

06 December 2013

PN 102

The Financial Reporting Council (FRC) announces the closure of the investigation conducted under the Accountancy Scheme into the conduct of a Member and a Member Firm (PricewaterhouseCoopers LLP (“PwC”)) in relation to the preparation of reports to the Financial Services Authority (“FSA”) in respect of Barclays Capital Securities Limited’s compliance with the FSA’s Client Asset Rules for the periods from 1st December 2001 to 29th December 2009. Following the conclusion of this investigation, it has been decided that there is no realistic prospect that a Tribunal would make an adverse finding against the Member and Member Firm concerned. Consequently, no further action will be taken and the case will be closed.

Notes to editors:

  1. 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 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.
  2. In relation to disciplinary matters, 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 are: 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.
  3. Investigations are conducted by Executive Counsel and the Professional Discipline team within the Conduct Division. If disciplinary proceedings are commenced, Executive Counsel delivers a complaint to the Conduct Committee. The Conduct Committee then instructs the Convener to appoint a Disciplinary Tribunal.
    • Decision to investigate
    • Investigation
    • Decision whether to bring disciplinary proceedings against Member Firm or Member and, if so decided, referral to Disciplinary Tribunal
    • Tribunal hearing
    • Determination and imposition of sanction and/or costs order