FRC Discovers New Information, Legal Battle Ensues
- Former BHS directors’ inquiry could be reopened
- FRC discovered new information
- Insolvency Service requested more info from FRC
- Legal battle between FRC and Taveta Investments
- High Court ruled in favor of FRC
- Frank Field MP asks for investigation reopening
- BHS sold to Sir Philip Green in 2015
- Company went into administration in 2016
- PwC fined £10m in 2018 for handling audits
- Insolvency Service considering new evidence
The inquiry into the former directors of BHS could be reopened following the discovery of new information by the Financial Reporting Council (FRC). The Insolvency Service received a request from its chief executive, Sarah Albon, for more information regarding the conduct of the retailer’s directors. This sparked a legal battle between the FRC and Taveta Investments, as the company wished to impose an injunction on certain aspects it believed would expose business dealings. The High Court ruled in favor of the FRC, allowing the regulator to disclose all details soon. Frank Field MP wrote to the Insolvency Service asking if there is now clear and compelling evidence that the investigation into Sir Philip Green and his fellow BHS directors should be reopened. In 2015, BHS was sold to one of its directors, Dominic Chappell, for £1. The company went into administration in 2016. PwC was fined £10m in 2018 for handling the audits. An investigation by the FRC questioned why BHS’s directors’ assessment was not disputed considering the company signed off its audit days before it was sold. Albon confirmed that they have written to the FRC, requesting any material relating to the conduct of Taveta group directors they were previously unaware of and will examine it for new evidence to review their decision.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the potential reopening of an inquiry into BHS’s former directors based on new findings by the Financial Reporting Council (FRC). It includes relevant details about the legal battle between FRC and Taveta Investments, the High Court ruling, and the Insolvency Service’s response. The article also provides context about the previous investigation and decision not to disqualify the directors.
Noise Level: 3
Noise Justification: The article provides relevant information about the potential reopening of an inquiry into the former directors of BHS and includes details from various sources such as the Financial Reporting Council (FRC) and Sarah Albon’s response. It also mentions past events related to the case, like the legal battle between FRC and Taveta Investments, PwC’s fine for its handling of BHS audits, and the conclusions from Work and Pensions and Business, Innovations and Skills Committees. However, it does not offer much analysis or new insights beyond reporting on the current situation.
Financial Relevance: Yes
Financial Markets Impacted: BHS, Insolvency Service, Financial Reporting Council (FRC), PwC
Financial Rating Justification: The article discusses the potential reopening of an investigation into the former directors of BHS, which had a significant financial impact on the company and its stakeholders. It also mentions the involvement of the Insolvency Service, FRC, and PwC, all of which are relevant to financial matters.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk