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Vlad Yaitskiy via flickr
The regulator will receive £15 million ($19 million) of fine from PricewaterhouseCoopers, which audited now-defunct investment company London Capital & Finance (LCF) in 2016.
In May, the UK's Financial Reporting Council (FRC) had already imposed a fine of 4.9 million pounds on PwC for mistakes in the LCF audit.
LCF has been the focal point of a major retail savings scandal in the UK in recent times. Almost 12,000 retail investors, primarily elderly individuals, were defrauded of approximately £240m following their investment in bonds offered by LCF that guaranteed high profits. Nevertheless, the investment company went bankrupt in 2019.
The FCA determined that PwC's breach was unintentional and that the audit firm was not implicated in LCF's misconduct.
In February, the London High Court determined that LCF had organized a "pyramid scheme" where funds raised were used to purchase diamond jewelry, horses, guns, and club memberships.
source: ft.com
In May, the UK's Financial Reporting Council (FRC) had already imposed a fine of 4.9 million pounds on PwC for mistakes in the LCF audit.
LCF has been the focal point of a major retail savings scandal in the UK in recent times. Almost 12,000 retail investors, primarily elderly individuals, were defrauded of approximately £240m following their investment in bonds offered by LCF that guaranteed high profits. Nevertheless, the investment company went bankrupt in 2019.
The FCA determined that PwC's breach was unintentional and that the audit firm was not implicated in LCF's misconduct.
In February, the London High Court determined that LCF had organized a "pyramid scheme" where funds raised were used to purchase diamond jewelry, horses, guns, and club memberships.
source: ft.com
