The Financial Reporting Council (FRC) has launched an investigation into KPMG’s role as auditors in ensuring that the Bank of New York Mellon (BNY Mellon) reported client assets correctly to the Financial Services Authority (FSA)
The probe, to be carried out under the FRC’s Accountancy Scheme, relates to KPMG’s conduct regarding the bank’s London branch and its compliance with the FSA’s client asset rules for the years ended 31 December 2007 to 31 December 2011.
The FRC decision to investigate follows the Financial Conduct Authority’s move in April to fine BNY Mellon £126m for failing to keep client money safe during the financial crisis.
