Clarke sanctions review could see Big Four face £10m-plus regulatory fines

Big Four firms should face fines of £10m or more for poor quality audit work, while individual accountants guilty of dishonesty could be given 10-year bans, according to an independent review of the Financial Reporting Council’s (FRC) enforcement sanctions, which also calls for a greater focus on the provision of non-financial penalties.

The 72-page independent review, chaired by former Court of Appeal Judge Sir Christopher Clarke, makes a number of recommendations to update the regulator’s approach to enforcement in light of stakeholder concerns that sanctions were too low and the FRC’s role as competent authority.

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