Mr Rakow received a severe reprimand and a £75,200 fine in 2017, while Mr Taylor and Mr Hulse were both fined £100,000 each. James Rakow, an associate partner with fellow Big Four accounting firm Deloitte, also admitted misconduct in relation to the 20 audits after providing actuarial services to Equity Syndicate Management Limited and Syndicate 218. KPMG said it had agreed to undertake an additional internal review and report to the FRC on 'certain aspects of its 2018 audits of insurance undertakings'. KPMG was first reported to be under investigation by the Accounting and Actuarial Disciplinary Board - part of the FRC - in 2012, although Equity Red Star had been under investigation by Lloyd's and the Financial Services Authority since 2010 following a string of underwriting losses. The tribunal concluded that there was 'insufficient evidence' to provide an unqualified audit opinion. The tribunal found that, in both years, 'insufficient enquiries were made regarding the claims file review process', while 'warning signs of deterioration in the Syndicate’s claims reserves were not acted upon'. The FRC said the misconduct of KPMG and Mr Taylor arose from KPMG’s 20 audits of the financial statements of Syndicate 218, while the findings against Mr Hulse relate only to the 2009 audit. The accounting watchdog said it had severely reprimanded KPMG, its partner Mark Taylor, former partner Anthony Hulse, and Douglas Morgan, a former director of Equity Syndicate Management Limited, following its own investigations and after an independent tribunal found evidence of misconduct.

The Financial Reporting Council has fined accounting giant KPMG £6m for its audit of insurer Equity Syndicate Management more than a decade ago.Įquity Syndicate Management Limited is a corporate member of Lloyd’s of London, known as Equity Red Star (Syndicate 218), which describes itself as the UK's largest specialist motor insurer with an A+ rating.

The Club by Anthony Hulse