Julia Irvine 30 Nov 2017 05:05pm

MPs summon FRC over HBoS audit

The Financial Reporting Council is to be summoned to give evidence to the Treasury Select Committee early next year about the lessons it has learnt from the HBOS audit debacle

The decision follows today’s publication of the FRC’s report on its investigation of KPMG’s 2007 and 2008 audits of HBOS.

Treasury committee chair Nicky Morgan MP said, “This long-awaited report rightly acknowledges that the FRC should have been more ‘proactive’ in investigating KPMG’s audit of HBOS.

“It was only through pressure from the Treasury Committee that the FRC decided to act.”

Referring to the letter she received from FRC chief executive Stephen Haddrill, in which he admitted that the FRC had relied too heavily on other regulators rather than pursuing its own enquiries, she added, “As Mr Haddrill says, the report sets out the lessons that the FRC has ‘learnt for the future’.

“We will be calling the FRC to give evidence in the New Year to discuss whether their conclusions go far enough

In response, the FRC said that it had engaged with the Treasury Committee while it was preparing today's report which had been sent to Morgan.

“We will be happy to discuss our work and the report with the committee when we are called to appear before it,” a spokesperson said.