The Financial Reporting Council (FRC) is conducting a probe into Barclays’ auditor, PricewaterhouseCoopers (PwC), over reporting of the bank’s client asset rules to regulators between 31 December 2007 and 31 December 2011.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
PwC is still serving as Barclays’ auditor having held the role since 1896.
The watchdog said that the investigation comes after the Financial Conduct Authority’s final notice on Barclays on 23 September, when the lender was slapped a penalty of £38m ($59m) for failing to adequately protect client assets amounting to £16.5bn between 1 November 2007 and 24 January 2012.
The regulator said that the bank had significant weaknesses in the systems and controls at Barclays’ Investment Banking Division between November 2007 and January 2012 which led to risks of additional costs, long delays or asset loss for clients had Barclays become insolvent.
FCA director of markets David Lawton said: "Safeguarding client assets is key to maintaining market confidence if firms fail – Barclays lack of focus on the rules was unacceptable."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe regulator added that Barclays did not apply these rules properly while opening 95 custody accounts in 21 countries and also neglected taking appropriate legal arrangements with these companies.
The FRC is also carrying out a probe into Tesco’s accounts for 2012, 2013, and 2014, following an accounting glitch that led the firm to admit in September that it had overstated its half-year profit expectations by £263m.
The investigation will look into PwC’s role, which is still functioning as Tesco’s auditor.
