Three firms in frame over London Capital & Finance plc’s audit

In a Financial Reporting Council first, the watchdog has announced three investigations into the audit of London Capital & Finance plc, for the one month period ended 30 April 2015 (carried out by Oliver Clive & Co), the year ended 30 April 2016 (carried out by PwC), and the year ended 30 April 2017 (carried out by EY).

The investigations will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.

The collapsed minibond business is at the centre of a massive scandal, where more than 11,600 savers bought high-risk, unregulated minibonds, and look set to lose 75% of the £240 million they invested. The company fell into administration in January last year.