Accountant is confident of quality of work and agrees to comply with accountancy board probe
Deloitte will be investigated along with rivals KPMG into the losses that built up at Equity Red Star, Insurance Times has learned.
The Accountancy & Actuarial Discipline Board (AADB) is investigating the conduct of the actuaries, of which Deloitte is one.
A spokesman for Deloitte confirmed that the company carried out actuarial work for Equity, but added that it was confident about the quality of the work provided and would co-operate with the investigation. The AADB is also probing the auditors, KPMG.
Lloyd’s revealed earlier this year that Equity carried out “reserve reviews” and subsequent reserve releases without keeping adequate written records and telling Deloitte.
As a consequence of its failures, Lloyd’s said that Equity should be censured and ordered to pay £95,000 costs for carrying out the investigation.
The FSA carried out a section 166 investigation in 2010. It is unclear whether the FSA’s section 166 investigation – or Skilled Person’s Report – which is a probe into the responsibility of individuals to adhere to corporate governance, is still active.
Equity Red Star mounted large losses while under the management leadership of Neil Utley (pictured), who is now chairman at Hastings.
No comments yet