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.
The Guardian 
