PwCs Audit Of JP Morgan Faces Investigation

Thu, 10 Jun 2010

PricewaterhouseCoopers’ audit of JP Morgan may be investigated after the accountancy firm failed to spot that as much as £16 billion of client funds was kept in the wrong bank accounts .

According to a report in the Daily Telegraph, the Financial Services Authority (FSA) has referred the case to the Financial Reporting Council (FRC) and the Institute of Chartered Accountants in England and Wales (ICAEW).

An FRC spokesman told the Telegraph it was "liaising closely with the FSA and will consider whether any action needs to be taken" against PwC .

However, a spokesman for the ICEAW refused to comment on the report, saying he was "not aware of any kind of investigation".

Investment bank JP Morgan last week received a £33.3 million fine from the FSA – the largest ever financial penalty imposed by the regulator - for failing to protect clients’ money by keeping it separate from its own funds .

The FSA said the error, which went undetected for seven years, could have resulted in clients losing all their money, if the bank had gone bust during that time.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.