PwC (PricewaterhouseCoopers) Fined £2.9M for Lapses in
Wyelands Bank Audit Tied to Sanjeev Gupta
Los Angeles/Mar 25, 2025
NRIpress.club/Ramesh/ A.Gary Singh
PwC has been hit with a £2.9 million fine by the UK’s Financial Reporting Council (FRC) over shortcomings in its audit of Wyelands Bank, previously owned by Sanjeev Gupta.
The FRC identified “serious failings” in PwC’s review of the bank’s 2019 financial statements, citing breaches in six key areas, including risk assessments and audits of related party transactions.
Originally established in 1980, Wyelands Bank was acquired by steel tycoon Sanjeev Gupta in 2016 and became part of his GFG Alliance. However, in 2021, the Prudential Regulation Authority (PRA) ordered the bank to return customer deposits due to concerns over its financial stability following the collapse of Greensill Capital.
Jonathan Hinchliffe, the PwC partner responsible for the audit, was personally fined £33,412.
Claudia Mortimore, deputy executive counsel at the FRC, stressed the importance of auditors thoroughly understanding a company’s operations, especially when ownership changes. She noted that PwC failed to properly assess risks linked to the bank’s affiliation with the GFG Alliance, despite warnings from regulators.
As a result of its cooperation and admissions, PwC’s penalty was reduced from an initial £4.5 million.
A spokesperson for PwC acknowledged the shortcomings in the audit, stating that the firm has since implemented a multi-year program to enhance audit quality, with positive results reflected in recent supervision reports.
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