Big Four Suck Big FSA Teet
The Big Four accounting firms look set to make millions in fees as the Financial Services Authority (FSA) increasingly turns to outside advisers to investigate the management of banks and other financial institutions. The Times reports that the City watchdog’s use of “skilled persons reports” has increased dramatically this year. These are tools by which the FSA can compel a bank or other regulated institution to instruct outside experts to delve into its operations. The bank has no control over the …
The Big Four accounting firms look set to make millions in fees as the Financial Services Authority (FSA) increasingly turns to outside advisers to investigate the management of banks and other financial institutions.
The Times reports that the City watchdog’s use of “skilled persons reports” has increased dramatically this year. These are tools by which the FSA can compel a bank or other regulated institution to instruct outside experts to delve into its operations. The bank has no control over the investigation but is required to meet the cost.
In 2006-07, before the collapse of Northern Rock, the FSA ordered 18 such investigations. In 2008-09, the last year for which official figures are available, that number reached 56.
Nice work if you can get it.
