KPMG Fined Pound 5m Over 'Exceptional' Breach in BNY Mellon Audit


Wednesday, July 24, 2019   /    02:21PM    /    By Tabby Kinder,  FT   /   Header Image Credit:


KPMG has been handed a £5m fine for misconduct in work for BNY Mellon, the world’s largest custodian bank, over breaches that were described as “truly exceptional” by regulators.


The fine was awarded by an independent disciplinary tribunal and is due to be announced this week, according to two people familiar with the matter, dealing another blow to the reputation of the Big Four accounting firm.


The sanction, which follows an investigation from the UK Financial Reporting Council, brings the total fines levied on KPMG in UK to about £20m since June 2018. That is more than the FRC imposed in fines on the entire accounting industry last year.


However, the size of the fine will also disappoint the FRC, the audit watchdog, which had called for KPMG to be fined a record £12.5m over the botched reports. KPMG may also be granted a discount from the headline amount for admitting misconduct.


KPMG and the FRC declined to comment.


Read the full FT news report here.





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