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KPMG fined £5m over Co-operative Bank audit

KPMG fined £5m over Co-operative Bank audit

Business
KPMG has been fined £5m and "severely reprimanded" after admitting misconduct in its 2009 audit of Co-operative Bank.The Financial Reporting Council (FRC) said KPMG's bad auditing came in the wake of Co-operative Bank's merger with building society Britannia.It said the firm's deficiencies included "failures to exercise sufficient professional scepticism".KPMG said it regretted that some of its audit work "did not meet the appropriate standards".The accountancy giant had also failed to tell Co-op Bank that a number of loans it acquired through the Britannia merger were riskier than thought and failed "to obtain sufficient appropriate audit evidence", the FRC said. KPMG will pay £4m after agreeing to a settlement. Audit partner Andrew Walker was also fined
Bounty pregnancy club fined £400,000 over data handling

Bounty pregnancy club fined £400,000 over data handling

Technology
Pregnancy club Bounty UK has been given a £400,000 fine for illegally sharing the personal information of more than 14 million people.The fine was issued by the Information Commissioner's Office (ICO) in what it said was an "unprecedented" case.Bounty compiled personal data but did not tell people that it was shared with 39 other organisations, said the ICO.Bounty said it "acknowledged" the ICO's findings and had now made changes to how it handled member data.'Careless' data-sharingThe Bounty pregnancy and parenting club offers free samples, vouchers and guides to prospective and new parents via packs given out in hospitals or sent to people who use its apps.Bounty gathered information from apps, its website, cards in merchandise packs and from new mother
Google fined €1.49bn for restricting rivals' ads

Google fined €1.49bn for restricting rivals' ads

Technology
By Alexander J Martin, technology reporter Google has been fined €1.49bn (£1.28bn) by the EU for breaching competition laws with its AdSense advertising service - its third such fine in as many years.Announcing the new fine, the EU's competition commissioner Margrethe Vestager said Google had restricted rivals from appearing in online search advertisements. Ms Vestager said the company had been fined for its "illegal practices in search advertising brokering to cement its dominant market position"."They shouldn't do that - it denied consumers choice, innovative products and fair prices," added Ms Vestager.In response, a Google spokesperson said the company had made a "wide range of changes" to address the commission's concerns. The f...
Leave.EU campaign fined for illegal marketing

Leave.EU campaign fined for illegal marketing

Technology
By Alexander J Martin, technology reporter Pro-Brexit campaign group Leave.EU and the Arron Banks firm Eldon Insurance have been fined £60,000 each for illegal marketing messages.The fines were issued by the Information Commissioner's Office (ICO) which also announced it will audit both firms' handling of personal data. Leave.EU was the unofficial Leave campaign which lost its bid to Vote Leave for official recognition by the Electoral Commission during the 2016 EU referendum.In June 2018 Mr Banks, a major donor to Leave.EU, told a committee of MPs that nobody worked for both Leave.EU and Eldon Insurance - a statement he later changed to say that staff transferred on short-term contracts.After investigating the relationship between the two organisat...
Deloitte fined £409k by Malaysian authorities

Deloitte fined £409k by Malaysian authorities

Business
By Wale Azeez, business reporter Deloitte has been fined RM2.2m (£409,000) by Malaysian authorities over a state investment fund embroiled in corruption charges.The global professional services giant is being censured by Securities Commission (SC) Malaysia for four breaches, in its role as an auditor for the state investment fund 1Malaysia Development Berhad (1MDB) during the 2015 and 2016 financial years. According to the commission, Deloitte was the statutory auditor for 1MDB's real estate unit 1MDB Real Estate Sdn Bhd and its 486-acre mixed use Bandar Malaysia development (BSMB).Bandar Malaysia launched a RM2.4bn (£446m) Islamic Bond issue in 2014, which the SC says contained irregularities "which may have a material effect on the ability of...