Sanctions against former Financial Management Controller of Tech Data Limited
20 December 2017
Following the conclusion of the Financial Reporting Council’s (FRC) investigation, the former Financial Management Controller of Tech Data Limited (formerly known as Computer 2000 Distribution Limited), Kevin Silverwood, has been fined and excluded from the accountancy profession after admitting Misconduct in relation to the preparation of the financial statements for the financial years ended 31 January 2012 and 31 January 2013.
Mr Silverwood admitted six allegations that his conduct fell significantly short of the standards reasonably to be expected of a member of the Institute of Chartered Accountants in England and Wales (ICAEW). Mr Silverwood breached the ICAEW’s Fundamental Principle of Integrity, which required him to be straightforward and honest in all professional and business relationships and not to be knowingly associated with information that he knew to be false or misleading.
The FRC’s Executive Counsel has agreed the following terms of settlement with Mr Silverwood, which have been approved by a legal member of the independent Tribunal Panel:
- Exclusion as a member of ICAEW for a recommended period of 5 years, reduced to 4 years for mitigating factors; and
- A fine of £50,000, reduced to £11,250 taking into account Mr Silverwood’s financial resources, adjusted for mitigating factors and discounted for settlement.
Claudia Mortimore, FRC's Interim Executive Counsel, said:
“Misconduct by accountants undermines public confidence in the profession and in the reliability of financial statements. The sanctions in this case, including a period of exclusion, send a message to the profession that members must uphold high standards of conduct and act with integrity in all areas of their work.”
The FRC has also published the settlement agreements in relation to:
- Mr Philip John James, former Finance Director of Tech Data Limited, and a member of the ACCA, in relation to the financial years ended January 2012 and 2013; and
- Ernst and Young LLP and Mr Julian Gray, in relation to the audit of Tech Data Limited for the financial year ended 31 January 2012.
These were announced on 9 August 2017
and 16 October 2017
EY LLP and Mr Julian Gray Settlement Agreement
EY LLP and Mr Julian Gray Particulars of Fact and Acts of Misconduct
Mr Philip John James Settlement Agreement
Mr Philip John James Particulars of Fact and Acts of Misconduct
Mr Kevin Silverwood Settlement Agreement
Mr Kevin Silverwood Particulars of Fact and Acts of Misconduct
Notes to editors:
- The Financial Reporting Council’s (FRC) 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.
- In relation to enforcement 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 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.