PWC FINED IN JP MORGAN CASE
06 Jan, 2012
PricewaterhouseCoopers (PwC) has been fined £1.5m in relation to bank JP Morgan’s failure to protect clients’ money.
The Accountancy and Actuarial Discipline Board (AADB) fined PwC for failing to spot that JP Morgan had lumped clients’ money with the bank’s own funds, thus leaving it exposed if the bank became insolvent, an act that the bank itself was fined £33.3m by the Financial Services Authority (FSA) in 2010.
Instead of reporting this activity, PwC was said to have told the FSA that all rules had been correctly followed by JP Morgan.
AADB said in a statement: “PwC accepted that it did not carry out its professional work in relation to these reports with due skill, care and diligence and with proper regard for the applicable technical and professional standards expected of it.”
PwC’s “misconduct” was deemed “very serious” by the tribunal, however the size of the fine was dropped from £2m due to the fact the company was cooperative.