The UK’s accountancy watchdog has launched an investigation into KPMG’s audit of the Bank of New York Mellon, two months after the world’s largest global custody bank was hit with a record UK fine for mixing its own funds with those of clients.
The Financial Reporting Council said on Tuesday that it will probe the way KPMG audited client money arrangements at the Bank of New York Mellon London Branch and a subsidiary, Bank of New York Mellon International Limited.
BNY Mellon admitted violating client asset rules over a five-year period, from 2007 to 2011. As the bank’s auditor, KPMG examined whether BNY Mellon’s custody arrangements complied with UK client asset rules.
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