PwC Fined £15M for Failing to Report Fraud Suspicions

The Financial Conduct Authority imposes its first-ever penalty on an audit firm for neglecting to act on red flags during a 2016 audit of London Capital & Finance.

PwC identified several red flags indicating potential fraud but did not report them to the FCA promptly.
The audit firm signed off on London Capital & Finance's accounts despite suspecting fraudulent activities.
London Capital & Finance collapsed in 2019, owing £237 million to nearly 12,000 investors.
The FCA criticized PwC for depriving the regulator of potentially vital information by not acting immediately.
PwC has settled with the FCA, acknowledging an unintentional reporting breach.