KPMG has admitted to misconduct over compliance reports on BNY Mellon’s custody assets, with a disciplinary tribunal now set to decide what sanctions should be imposed.
The investigation into KPMG Audit and partner Richard Hinton relates to an investigation into 2011 reports on client assets held by BNY Mellon and its London branch.
A disciplinary tribunal will be convened to decide what sanctions should be imposed on KPMG, according to a statement from the UK’s Financial Reporting Council (FRC).
The statement said KPMG and Hinton had failed to give adequate consideration on whether the records of custody relationships maintained by BNY Mellon were compliant with certain rules.
The FRC added no client money or assets were lost as a result of the misconduct.
An investigation was launched into KMPG’s audit of BNY Mellon in 2015, after the UK Financial Conduct Authority fined BNY Mellon for £126 million for failing to keep customer money safe during the financial crisis.