“We note today’s issuance by the Financial Reporting Council (FRC) of a number of formal complaints relating to the preparation and audit of the Report and Accounts of Equity Red Star Motor Syndicate 218, a Lloyd’s motor insurance underwriter, for the years ended 31 December 2007, 2008 and 2009. These complaints are against various parties, including KPMG and a current and former partner (the KPMG parties), as well as the external actuary and the syndicate managing agent’s finance director. The complaints against KPMG and the current KPMG partner are in relation to 2008 and 2009, and the complaint against the former KPMG partner is in relation to 2009.
“In so far as the complaints relate to the KPMG parties, we have co-operated fully with the FRC's investigation, which was launched in March 2012. We take our audit responsibilities very seriously and, as we have commented previously, we believe that our audit work in relation to the Equity Red Star syndicate met the relevant professional standards. However, given that the matter is now subject to formal consideration by a tribunal, we will not be commenting further.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.