KPMG has been “severely reprimanded” and told to undertake an internal review over the way the company audited an insurance company.
KPMG was fined £6m and the Financial Reporting Council (FRC) said the fine related to audits of syndicate 218 in 2008 and 2009 at a firm based with the Lloyds of London market.
A KPMG partner, Mark Taylor and former partner Anthony Hulse were both fined £100,000, a director at Syndicate 218, Douglas Morgan was reprimanded also.
The FRC started their investigation into the audits in 2012 and action started against the firms in 2016.
An FRC spokesman said, “While a reprimand has no effect financially, it is a stain on their reputation and will be considered by other companies when they are thinking about changing their auditors.”
A spokesman for KPMG said, “We are disappointed that aspects of our 2008 and 2009 audits were found not to have met the standards set by our regulator.
“Since this work was conducted, we have changed our insurance audit approach considerably, including how we work with actuaries when auditing insurance claims reserves.
“We will continue to work hard to put historical matters such as this to rest as quickly as possible.”
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