A Deloitte fine has been officially dished out this week, as the accountancy firm was fined over $22 million for failing to properly work “conflicts of interest” in its recent advice to the MG Rover group, a collapsed British carmaker. The fine against Deloitte marks the highest fine the Financial Reporting Council (FRC) has made, using its recently given powers to file the charge against the firm, the CS Monitor reports this Monday, Sept. 9.
The Deloitte fine was officially charged this week, the record-making amount due to a “failure to work several conflicts of interest” in its advice to MG Rover. The FRC to claims that an independent tribunal supported their call to punish the firm on the $22 million fine, though Deloitte continues to assert it does not agree with the tribunal’s findings.
Some financial experts are viewing the hefty fine marking one of the first time that the Financial Reporting Council is exercising its recently strengthened sanctioning powers. The FRC has been criticized several times in past years for not being harsh enough on its own accountants.
According to a statement from the executive director of the FRC:
"The sanctions imposed are in line with the FRC's aim to ensure penalties are proportionate and have the necessary deterrent effect to prevent misconduct and bolster public and market confidence.”
Deloitte offered its own statement prior to the fine, alleging that they would be working with both stakeholders and other companies in their decision-making.
“Over the coming weeks, we will continue our discussions with relevant stakeholders and professional bodies about the potentially wide ranging impact on the profession and wider business community of the tribunal findings.”