The Financial Reporting Council (FRC) has announced it has fined Deloitte a record-breaking £14m and issued a severe reprimand over the firm's actions as advisors to the MG Rover Group, which were subject to a disciplinary tribunal.

The final report and detailed findings of the tribunal hearing which took place at the end of July are published today. In addition to the financial penalty imposed on Deloitte, former partner Maghsoud Einollahi has been excluded from the profession for three years and fined £250,000 for his misconduct.

Paul George, FRC executive director conduct said: 'The final report of the tribunal provides a clear analysis of the case and how it reached its conclusions. It should be essential reading for all members of the profession. The sanctions imposed are in line with the FRC's aim to ensure penalties are proportionate and have the necessary deterrent effect to prevent misconduct and bolster public and market confidence.'

The tribunal found that all 13 allegations against Deloitte and Einollahi had been proven. They related to the firm's actions as advisers to MG Rover when the company was sold to the so-called 'Phoenix Four' group of executive directors for a nominal £10.

In summing up the process of determining the level of sanctions for misconduct by Deloitte and Einollahi, the tribunal stated: 'We are satisfied that there was substantial financial benefit intended to be, and actually derived, from the misconduct, that the misconduct caused the loss of significant sums of money, that the misconduct involved deliberate failure to comply with professional standards, that the breaches were substantial and of importance, that there was a failure to act with complete integrity.'

A Deloitte spokesperson said the firm remained disappointed with the outcome of the tribunal and disagreed with its main conclusions, which it claimed could have wider repercussions for accountancy firms.

'The quality of our work, carried out more than 10 years ago, has not been criticised, but the tribunal found against us on a number of points. This could have negative implications for the advice that can be provided by ICAEW member firms and members, both within the profession and business. Over the coming weeks, we will continue our discussions with relevant stakeholders and professional bodies about the potentially wid- ranging impact on the profession and wider business community of the tribunal findings.'

The previous biggest fine handed down by the FRC was a £1.4m sanction for PwC's misconduct as auditors to JP Morgan Securities Ltd. PwC admitted that it had failed to identify that the company was not complying with the FSA's Client Money Rules governing the segregation and protection of client money and incorrectly reported that it was.

the ICAEW would not comment saying its bylaws prevented it from doing so.