FRC probes role of small auditors in collapse of MFS

Ellichipuram Umesh

Thu, June 11, 2026 astatine 9:22 AM CDT 1 min read

The UK's Financial Reporting Council (FRC) says it has initiated an probe into respective tiny accountancy practices that worked for collapsed owe lender Market Financial Solutions (MFS).

According to a Financial Times (FT) report, MFS and a bid of entities owned by laminitis Paresh Raja went into insolvency successful February.

Creditors that had reportedly lent much than £2bn ($2.6bn) to the radical person since alleged fraud. The illness has sharpened scrutiny of underwriting successful asset-backed lending.

Different parts of Raja's lending businesses were audited by a fig of tiny practices alternatively than done a azygous consolidated radical audit by a ample company.

The FRC is investigating Berkeley Finch, which issued an unqualified sentiment connected MFS' 2024 accounts, and Silver Levene, which audited Raja's Zircon Group successful 2024.

Berkeley Finch received £72,375 for its 2024 audit of MFS. When MFS failed, it owed wealth to Barclays and to a portion of Apollo Global Management.

However, Silver Levene told the FT that the probe does not connote immoderate wrongdoing but confirmed the institution volition afloat cooperate.

London-based Silver Levene was acquired past twelvemonth by Xeinadin.

The FRC is besides examining Magus Chartered Accountants and 2 unnamed accountants implicit their enactment connected MFS and different related companies. Magus assisted successful preparing MFS' fiscal statements.

Raja is taxable to a worldwide freezing order. He disputes the allegations successful the administrators' claim, the FT added.

The regulator said a 3rd unnamed accountant is besides nether investigation. Other precocious thoroughfare practices that audited MFS-linked entities person not been identified successful the existent action.

"FRC probes relation of tiny auditors successful illness of MFS" was primitively created and published by The Accountant, a GlobalData owned brand.