Bloomberg News

PwC Investigated Over Barclays Capital U.K. Client Money Reports

December 16, 2011

Dec. 16 (Bloomberg) -- A U.K. accounting regulator is investigating whether PricewaterhouseCoopers LLP’s reports on client assets at Barclays Capital Securities Ltd. broke financial rules.

The Accountancy & Actuarial Discipline Board is reviewing PwC’s reports to the Financial Services Authority outlining Barclays Capital’s compliance with client-asset separation rules between December 2001 and 2009, the London-based accounting regulator said in a statement today.

The FSA fined the bank 1.12 million pounds ($1.7 million) in January for failing to put as much as 752 million pounds a day of client money into protected accounts that were separate from its own money-market deposits. The AADB is already seeking a record fine of at least 1.5 million pounds against PwC in a similar case concerning regulatory reports on client-money accounts at JPMorgan Chase & Co.’s London securities unit.

“The focus of the AADB is on cases which raise important issues affecting the public interest,” the regulator said in an e-mailed statement.

Spokespeople for PwC and Barclays Capital in London couldn’t be immediately reached to comment.

Tim Dutton, a lawyer for PwC, told a London tribunal in the JPMorgan case last month that the fine should be capped at 1 million pounds because the firm had admitted and apologized for the error, which was a “result of information technology changes made by JPM treasury staff,” and that no clients of the bank had lost money.

--Editors: Anthony Aarons

To contact the reporter on this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus