Quindell’s accounting investigated by regulator

The insurance company Quindell, which has recently been sold to Australian law firm Slater & Gordon for more than £600m, is under investigation from regulators for accounting irregularities.

The Financial Conduct Authority (FCA) is looking into Quindell’s statements about its accounts for 2013 and 2014.

Shares stopped trading temporarily on the 24th June, and will return to the market once the accounts are finalised, which could apparently take several weeks.

Quindell admitted “aggressive” accounting policies had occurred, and has been carrying out its own review of proceedings, under the advice of PricewaterhouseCoopers (PwC).

In terms of acquisition and revenue costs, in some of Quindell’s businesses, the review said that they were “at the aggressive end of acceptable practice”, whilst some policies were “not appropriate”.

The firm is required to list all details of every single deal made by Rob Terry, the former chairman, in order to assess whether accounting errors have been made. Accountants Ernst & Young are involved with the probe into the accounting, having been brought in by the authorities to do so.

A spokesperson for Slater & Gordon, commenting on the news, said: “We have always been of the view that the accounting policies of Quindell plc were aggressive. Our assessment of the professional services division [PSD] was not based on their historical financial statements, but on a detailed bottom-up assessment of the key drivers of the business applying our own accounting policies.”