News July 2015 Outcome of disciplinary case against Mr. Christopher Gee

Outcome of disciplinary case against Mr. Christopher Gee

08 July 2015

PN 45/15

The Financial Reporting Council (FRC) announces the outcome of the disciplinary case in connection with Mr. Christopher Gee, former Finance Director of Manchester Building Society.

A settlement agreed between the Executive Counsel to the FRC, Gareth Rees QC and Christopher Gee has been approved by a legal member of the FRC Tribunal. Mr. Gee admitted that his conduct fell significantly short of the standards reasonably to be expected of a Member as set out in the Particulars of Fact and Acts of Misconduct.

Following an investigation under the Accountancy Scheme into the fair value hedge accounting and auditing of interest rate swaps and related mortgages at Manchester Building Society, which gave rise to a prior period adjustment in its financial statements for the year ended 31 December 2012, the parties agreed the following terms of settlement:

  • A Fine of £25,000 to be paid by Christopher Gee;
  • Mr. Gee to receive a Reprimand;
  • A sum of £5,000 to be paid by Christopher Gee as a contribution to the Executive Counsel’s costs. 

Read or download the Settlement Agreement: Christopher Gee (PDF) and the Particulars of Facts and Acts of Misconduct: Christopher Gee (PDF)

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 in the UK dealing with cases which raise important issues affecting the 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
  3. 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.
  4. 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.