The UK Financial Reporting Council (FRC) has taken over regulatory consideration of accounting irregularities at Manchester City from the Institute of Chartered Accountants in England and Wales, as confirmed in a letter to the House of Commons business select committee. While no formal investigation has begun, the FRC is making inquiries into the case following an independent commission's finding that Manchester City breached Premier League financial regulations between 2009-10 and 2017-18, including artificially inflating the club's financial position by over £900 million. Manchester City is appealing the verdict.
The FRC, which has greater powers and resources than its predecessor, can investigate the conduct of Manchester City's auditors, BDO, and potentially sanction individuals involved if they belong to professional accountancy bodies. The case highlights gaps in regulatory powers, prompting calls from Liam Byrne, chair of the business select committee, for reforms to strengthen accountability and enable the FRC to compel evidence and pursue directors more effectively.
Read the full story: BBC UK News.
Source: BBC UK News. Aggregated summary, not independent reporting.