The Financial Reporting Council's Executive Counsel has announced that it will go to tribunal over a matter concerning the conduct of accounting mid-tier firm Mazars and the firm's London managing partner Richard Karmel, in a case relating to a trustee of the First Quench Pension Fund.

This follows an investigation, first announced by the FRC in 2009, and concerns a proposed replacement of First Quench Retailing Limited as the sponsoring employer of the First Quench Pension Fund, and the advice that Mazars and Karmel gave that regard.

The complaint alleges that the conduct of Mazars and Karmel fell significantly short of the standards reasonably to be expected of ICAEW members and member firms in that they failed to act in accordance with the ICAEW's Code of Ethics fundamental principles to act with professional competence and due care, to act with objectivity, to respect the confidentiality of information, and to act with integrity.

The FRC's former disciplinary arm, the Accountancy and Actuarial Discipline Board, decided to investigate the matter in 2009 following a complaint from the Pensions Regulator after consultation with the ICAEW.

According to the FRC, the alleged misconduct, which occurred between 5 August 2007 and 18 September 200, involved a report to the trustee on the quality of the covenant of First Quench Retailing Limited as at 30 May 2007; a report to the trustee on the quality of the covenant of the Newco assuming the transaction (ie, the substitution) were to proceed and a report to the Trustee on the merits and risks of the transaction. This was finally presented as a report 'on the benefits and risks of retaining First Quench Retailing Limited as the sponsoring employer and the benefits and risks of transferring to Newco'.

An independent disciplinary tribunal will be appointed to hear the formal complaint. A date for the tribunal has not yet been set.

In a statement, Mazars said: 'We are disappointed that the FRC has decided to pursue a formal complaint in relation to this piece of advisory work. The firm takes its commitment to quality, objectivity and integrity very seriously and intends to contest these allegations robustly.'