Notice of Hearing

News types: Generic Announcement

Published: 9 October 2017

A hearing of the Disciplinary Tribunal of the Financial Reporting Council ("FRC") will consider a Formal Complaint against Baker Tilly UK Audit LLP, a member firm of The Institute of Chartered Accountants of Scotland (“ICAS”), Richard King, a member of The Institute of Chartered Accountants in England and Wales (“ICAEW”), and Steven Railton, a member of The Association of Chartered Certified Accountants (“ACCA”). 
 
The hearing will commence on Monday 9th October 2017 at 10.00 am.
 
The hearing venue is The International Dispute Resolution Centre Limited, 70 Fleet Street, London EC4Y 1EU.
 
The Formal Complaint concerns the conduct of Baker Tilly UK Audit LLP in relation to their audit of the financial statements of The Tanfield Group plc and two of its subsidiaries for the year ended 31 December 2007. 
 
The hearing relates to the investigation notified in FRC Notice PN 37 of 2014 and the delivery of a Formal Complaint in relation to Baker Tilly UK Audit LLP, Richard King and Steven Railton.  
 
Notes to Editors:

  1. The FRC is responsible for promoting transparency and integrity in business.  We are the UK competent authority for audit and set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work.  We represent UK interests in international standard-setting.  We also monitor and take action to promote the quality of corporate reporting and auditing.  We operate independent enforcement arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.

  2.  In relation to disciplinary matters, the FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest. In brief, the stages of the disciplinary process are:

    • Decision to investigate

    • Investigation

    • Decision whether to bring disciplinary proceedings against a member firm or member and, if so decided, referral to Disciplinary Tribunal

    • Tribunal hearing

    • Determination and imposition of sanction and/or costs orders

  3.  The FRC can start a disciplinary investigation in one of two ways: (i) the professional bodies can refer cases to the FRC; and (ii) the FRC may decide of its own accord to investigate a matter. The Conduct Committee will consider each case identified or referred to it and decide whether or not the criteria for an investigation are met.  Investigations are conducted by Executive Counsel and the Enforcement Division. If disciplinary proceedings are commenced, Executive Counsel delivers a Formal Complaint to the Conduct Committee. The Conduct Committee then instructs the Convener to appoint a Disciplinary Tribunal.

  4.  Formal Complaints filed following an investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a Formal Complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licences.

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