Key facts
- The Financial Reporting Council (FRC) has launched investigations into three accountancy firms: Magus Chartered Accountants, Berkeley Finch Limited, and Silver Levene (UK).
- The probes are related to potential auditing failures concerning the collapsed mortgage lender, Market Financial Solutions (MFS).
- MFS fell into administration in February after allegations of fraud totaling £1.3bn.
- Berkeley Finch audited MFS's 2024 financial statements, and its conduct is under review.
- The FRC is also examining the audit of Zircon Group Limited, linked to Silver Levene, for the 2024 financial year.
The Financial Reporting Council (FRC), the UK's accounting watchdog, has initiated investigations into three accountancy firms and several individual accountants for their roles in auditing the collapsed mortgage lender, Market Financial Solutions (MFS).
MFS entered administration in February following allegations of fraud amounting to £1.3bn. The FRC's investigation will examine potential auditing failures by Magus Chartered Accountants, Berkeley Finch Limited, and Silver Levene (UK).
Specifically, Berkeley Finch, which audited MFS's 2024 financial statements, is under scrutiny. The FRC is also reviewing the 2024 audit of Zircon Group Limited, an entity connected to Silver Levene. Additionally, the conduct of Magus Chartered Accountants and two of its individual accountants will be probed.
The decisions to launch these investigations were confirmed by the FRC's conduct committee on April 21. The watchdog emphasized that the opening of an investigation does not imply any findings of misconduct or breach of requirements have been made.