The Financial Reporting Council (FRC) disciplinary hearing into Deloitte and one of its former partners over their role as auditors and advisers to various companies involved with MG Rover Group, which collapsed into administration in 2005, has started.

The FRC's concerns relate to actions taken by Deloitte & Touche (now Deloitte) and Maghsoud Einollahi, a partner in the corporate finance department, in the run-up to the eventual collapse. This includes their dealings as auditors and advisers with the so-called 'Phoenix Four', a group of former directors who bought MG Rover for a token £10 in 2000.

The complaint alleges that, in connection with certain transactions, Deloitte and Einollahi failed adequately to consider the public interest; the potential for there to be different commercial interests between the Phoenix Four, MG Rover Group and associated companies and shareholders; and the conflicts of interest and self-interest threat in relation to advising the Phoenix Four whilst maintaining client relationships with the MG Rover Group.

In this respect, the FRC argues, their conduct fell short of the required standards relating to objectivity and due care. There is no suggestion of misconduct in relation to Deloitte's audit work for the MG Rover Group.

A 2011 report by the National Audit Office found that the Phoenix Four, together with MG Rover's former chief executive, paid themselves £42m over the five years they ran the company, which collapsed with over £1bn of debt. The Phoenix Four were subsequently banned from serving as company directors.

The tribunal could last for up to four weeks.

The open session is being held at the International Dispute Resolution Centre, 70 Fleet Street, London EC4Y 1EU.