A former finance director at Cattles and a former FD at a subsidiary of the failed subprime lender are to face disciplinary hearings at the FRC, it has been announced.

Both James Corr and Peter Miller were fined - £400,000 and £200,000 respectively - and banned by the Financial Standards Authority (FSA) in March 2012, for their involvement in the misrepresenting of Cattles and its subsidiary Welcome Financial Services financial health.

But Corr, a member of ICAS, and Miller, an ICAEW member, now both face also being struck off from their respective membership bodies, by the FRC at the hearings next week, and could incur additional fines to those issued by the FSA last year.

It was announced last week that insolvency firm Zolfo Cooper was taking legal action - on behalf of Cattles creditors - against the company's auditor, PwC; citing negligence over the audit of two years of financial statements that led to it incurring liabilities of £1.6bn.

In 2009, Cattles admitted it had underestimated the provisions it needed to make for bad loans. It had reported profits of £165.2m in 2007, when a proper impairment of the bad loans would have resulted in a £96.5m loss. It restated its 2007 accounts, while its 2008 accounts showed a £745m loss when the provisions were added.

The events at Cattles are subject to an ongoing investigation by the Accountancy and Actuarial Discipline Board and as such the FRC would not comment further on the hearings on the 18 and 19 February respectively that Corr and Miller face.