Deloitte fined £14m for MG Rover advice

Business advisory firm Deloitte has been fined a record £14 million for failings in its professional advice to carmaker MG Rover Group which went bust in 2005.

Newswire Reuters reported this morning that the Financial Reporting Council (FRC), the regulatory body that replaces the FSA in the United Kingdom that brought the case against Deloitte, said an independent tribunal has also backed the FRC’s call for a severe reprimand of the company.

In July the tribunal found that all 13 allegations the FRC had brought against Deloitte were proven.
A fine of £250,000 for Maghsoud Einollahi, a partner with Deloitte at the time the carmaker went into administration, was agreed by the tribunal.

Mr Einollahi has also been banned from practicing accountancy for three years.

Reuters reported that Deloitte responded that it still disagrees with the tribunal’s main conclusions.

Source: http://www.themanufacturer.com/articles/deloitte-fined-14m-for-mg-rover-advice/