FCA censures Macintyre Hudson for failings in client asset reports

Regulatory news

2024-08-16 09:30:48

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The FCA has censured the auditor Macintyre Hudson LLP (MHA) for failing to prepare client assets reports to the required standard.

The UK Financial Conduct Authority (FCA) has censured the auditor Macintyre Hudson LLP (MHA) for failing to prepare client assets reports to the required standard.

MHA failed to notify the FCA of rule breaches by firms it had audited, which could have put customers’ money at risk.

Client asset protection is a key part of maintaining market confidence, financial stability and consumer protection, the regulator explains. Firms that hold client assets are required to have an auditor provide a client assets report to the FCA on an annual basis except in limited circumstances. The FCA relies on the accuracy of these client assets reports to monitor whether firms are complying with its rules, so it is important that auditors ensure their reporting is accurate.

The FCA’s investigation found that between 2015 and 2019, MHA failed to prepare four client assets reports (relating to two firms) to the required standard. It failed to report 25 breaches of the rules by firms it had audited. These ranged from failings in documentation, to firm’s assets being held alongside client assets.

Maria Nikolova

Maria has been engaged in journalism for more than 17 years, providing Forex industry coverage for the past 10 years. Before joining FNG she was Managing Editor at FinanceFeeds. Prior to that, she worked at LeapRate. Maria has a Philosophy degree from the St. Kliment Ochridski university in Sofia. She has specialized in Cognitive Science in Vienna. Her interests include psychology, AI, and linguistics.