News July 2015 FRC to investigate the conduct of certain individual Members in connection with financial irregulari

FRC to investigate the conduct of certain individual Members in connection with financial irregularities at RSA Insurance Ireland Limited

07 July 2015

PN 43/15

The Financial Reporting Council (FRC) has decided to investigate the conduct of certain individual Members  in connection with financial irregularities at  RSA Insurance Ireland Limited in respect of the year ended 31 December 2012 and relevant prior periods as a result of the identification of issues within the claims and accounting functions announced by RSA Insurance Group plc at the end of 2013.

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 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.

2. In relation to disciplinary matters, the FRC is the independent, investigative and disciplinary body for accountants and actuaries dealing with cases which raise important issues affecting the UK public interest. In brief, the stages of the disciplinary process are:

  • 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 orders

The FRC can start a disciplinary investigation in respect of either Member Firms or individual members 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.
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.