Regulation

PwC fined £15m over London Capital & Finance failures

Markets watchdog says Big Four firm did not highlight the concerns it had about the mini-bond provider

‘There were a number of red flags that led PwC to suspect fraud. They should have acted on them immediately,’ FCA says
‘There were a number of red flags that led PwC to suspect fraud. They should have acted on them immediately,’ FCA says Photo: Beata Zawrzel/Getty Images

The Financial Conduct Authority has hit PwC with a £15m fine for failing to alert the watchdog to suspected fraudulent activity at now-collapsed mini-bond provider London Capital & Finance.

In its first-ever fine of an auditor, the FCA said the Big Four firm “encountered significant issues” throughout its 2016 LCF audit.

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