Accounting giant PricewaterhouseCoopers is poised to spin-off and float its consultancy arm in the m...
Accounting giant PricewaterhouseCoopers is poised to spin-off and float its consultancy arm in the midst of a scandal in the accountancy profession that is gripping American business. The industry is facing a crisis of confidence as allegations swirl that conflicts of interest encourage accountants to approve flattering balance sheets. PWC hopes the flotation of its management-consulting arm will put an end to suggestions its auditing work is compromised.
The City regulator's regular supervisory work will be cut back over the next year to improve on consumer education and responsive work, the Financial Services Authority said yesterday in its "manifesto for a true FSA" writes the Telegraph. However, the FSA Plan & Budget 2002-03 also revealed that staff costs will rise by almost 12% in the coming year, to £125m. This is 70% of the regulator's mainstream budget, estimated at £180.5m for 2002-03.
The Times also picks up an FSA report but writes that the City's chief financial watchdog yesterday said it was going to crack down on banks' credit controls, amid fears over the health of the UK economy. Carol Sergeant, managing director for risk assessment at the Financial Services Authority (FSA), said that while banks were probably better capitalised than they have been for some years, concerns over the economy required an increase in regulatory monitoring.
The Times also writes that Jean-Claude Trichet's hopes of taking the helm at the European Central Bank (ECB) were dealt a blow yesterday when a French court refused to drop an inquiry into a banking scandal that has tarnished his reputation.
Finally the Times reports that a city broker and four associates have been arrested by the fraud squad for allegedly orchestrating a £2m insider-dealing ring that preyed on spread-betting firms. The five men, who are aged in their late twenties and early thirties, were arrested two weeks ago at their homes in London. The City of London Police fraud squad, which launched the inquiry 18 months ago, has not released the names of the men, who have all been bailed for six months. No charges have yet been brought.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation