Deloitte defeated in MG Rover appeal

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Deloitte has lost an appeal over a ruling that it failed to manage conflicts of interest in its advice to MG Rover Group and the "Phoenix Four" directors who bought the car manufacturer before it went bust.

Last year the Financial Reporting Council (FRC) said Deloitte and its former corporate finance partner, Maghsoud Einollahi, had failed to properly manage conflicts of interest.

The Big Four firm’s appeal against that decision was heard today (29 July) at the International Dispute Resolution Centre.

The tribunal confirmed its decision and found that Deloitte and Einollahi showed in “some instances a persistent and deliberate disregard of the fundamental principles and statements of the ICAEW’s code of ethics”.

It added that their conduct fell short of...

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Robert Lovell
Managing Editor
AccountingWEB.co.uk
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By JC
30th Jul 2013 10:43

Sanctions ....

Starting price = £42m '.. collected £42m in pay and pensions ..'

Alternatively, how about equivalent of 1/2 years salary for each of the 6,000 workers

OR

The cost of social security/dole for those of the 6,000 who need it from the data of job loss for the forseeable future until they get another job (open ended) - plus any contribution from the Pension Protection Fund (if any) that was required (i.e. cover all past & present liabilites of the PPF)

http://www.pensionprotectionfund.org.uk/news/pages/details.aspx?itemid=4...

 

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30th Jul 2013 11:00

JC - surely that should have been the starting point for the Phoenix 4?

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