Regulator Investigates KPMG for Role in BNY Mellon’s Client Asset Safety Breach

The Financial Reporting Council (FRC) has launched an investigation into the conduct of KPMG’s audit of Bank of New York Mellon.

The U.K. accounting regulator is investigating the firm in relation to its role in reporting to the Financial Conduct Authority (FCA) on BNY Mellon’s compliance with the authority’s client asset rules from 2007 to 2011. The decision to investigate follows the FCA’s £126 million fine imposed on BNY Mellon in April this year.

The FRC is the independent, investigative and disciplinary body for accountants and actuaries in the U.K. dealing with cases, which raise important issues affecting the public interest.