Watchdog Holds Hearing Against KPMG for U.K. Insolvency Scandal

Nov. 16, 2020, 8:37 PM

KPMG LLP could face another hefty penalty as U.K.'s accounting watchdog launched a tribunal hearing Monday over the firm’s handling of insolvency procedures for a second London-listed company.

The Financial Reporting Council, which is already investigating KPMG for its audit of the collapsed Carillion Plc, alleged at the disciplinary hearingthat KPMG and its insolvency partner, David Costley-Wood, faced serious conflicts of interest when they organized the sale of the bed maker Silentnight to HIG Capital, a buyout fund. HIG was able to buy the company without assuming pension liabilities of 100 million pounds ($132 million).

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