17 Oct Jewish Baby Strollers Reports Pension funds say accounting watchdog is ‘compromised’
Pension funds worth £300bn have branded the accounting watchdog “a creature of regulatory capture” and claimed it is compromised by its links to the Big Four audit firms.
The Local Authority Pension Fund Forum (LAPFF), an association of 87 local authority pension funds, accused the Financial Reporting Council (FRC) of supporting revised international accounting standards it claims are less robust than those required by UK law.
The LAPFF’s long-held view is that the international rules make it easier for struggling companies to pay out dividends that eat into their capital.
After the Brexit transition ends in December, the UK will need to decide whether to adopt any future changes to the international accounting standards.
In a letter to the FRC last month, Doug McMurdo, chairman of the LAPFF, accused the watchdog of being “a creature of regulatory capture and compromised with the Big Four accounting firms”.
The Big Four auditors – KPMG, PwC, EY and Deloitte – dominate the world of professional services, prompting scrutiny and some changes to how they do business.