Two of Britain’s biggest audit firms have reached a multimillion-pound settlement with administrators of London Capital & Finance over their role in the £237 million investment scandal surrounding the failed minibonds firm.
EY was responsible for auditing London Capital & Finance’s 2017 accounts, which were the minibond seller’s last set of figures before it collapsed. PwC was the auditor of its 2016 financial statements.
One of London Capital & Finance’s administrators had been pursuing claims against its former auditors as part of efforts to recover money for creditors. Disclosures in documents related to the administration have revealed that settlements were reached with the auditors last year “without an admission of liability”.
The terms of the agreements were not disclosed, but the administrators’ progress reports indicate