By City & Finance Reporter for the Daily Mail Published: 17:00 EDT, 24 July 2019 | Updated: 17:53 EDT, 24 July 2019 Tainted auditor KPMG has been stung with another £5million fine after failing to spot bank BNY Mellon had put customers’ money at risk. It signed off on reports saying BNY was keeping £1trillion of clients’ savings separate from its own funds, as required by rules – but it was actually mingling the two together, exposing customers to the risk of losses. The fine means KPMG has paid £21million since June 2018, following a string of blunders at Co-op Bank, insurer Quindell, motorcycle insurer Equity Red Star and fashion firm Ted Baker. However, its annual revenue was £2.3billion last year. Tainted auditor KPMG has been stung with another £5million fine The Financial Reporting Council wanted to charge KPMG a record £12.5million, but lawyers argued at a tribunal that this was unfairly high. It has now been cut to £5million after a hearing. BNY was previously fined £126million by the Financial Conduct Authority over the debacle in London between 2007 and 2013. Advertisement Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Auditor KPMG has been fined £5m ($6.3m) after failing to identify that BNY Mellon had not separated £1tn of customers' savings from its own funds, creating needless risk. The penalty was reduced from the record £12.5m sought by the Financial Reporting Council, following a tribunal. KPMG has paid £21m in fines since 2018, and reported £2.3bn in revenues for June last year.