FRC launches investigations PwC and EY over LC&F audits

The Financial Reporting Council (FRC) has launched investigations into three audit firms over the audits of London Capital and Finance (LC&F).

The audits pertain to the one month period ended 30 April 2015, carried out by Oliver Clive & Co., the year ended 30 April 2016, carried out by PwC, and the year ended 30 April 2017 – which was carried out by EY.

The investigations will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.

In January 2019 LC&F went into administration owing £236m to around 11,000 investors.
Later that year in April, an independent investigation into “events” at LC&F and the circumstances surrounding them was also ordered by the City Minister.

It came after the Financial Conduct Authority (FCA) board agreed that there was a public interest in a statutory investigation, and the economic secretary to the Treasury, John Glen, also agreed to use powers under the Financial Services Act 2012 to require the FCA to undertake an investigation into the events at LC&F and the circumstances surrounding them.

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