Deloitte is facing a fine over its handling of MG Rover's administration after the Financial Reporting Council (FRC) dismissed an earlier ruling and announced that the company failed to manage the conflicts of interest that its role created back in 2005.
Deloitte was appointed as an adviser to MG Rover and to the 'Phoenix Four' directors who bought the business out of administration. The controversial move saw the same business act as advisers to the distressed company and its buyout group.
In judging Deloitte, a tribunal stated that the company's conduct in the process has "showed in some instances a persistent and deliberate disregard of the fundamental principles and statements of the Institute of Chartered Accountants England and Wales' code of ethics". It could be hit with a fine of up to £20 million over the matter.
The four directors who moved in on MG Rover following its collapse in 2005 were struck off as company directors in 2011 after they shared £42 million in pay and pensions when they bought the business in 2010.
Deloitte has issued a statement against the verdict, claiming that the judgement brings with it "potentially serious implications".
The case comes amid a period of upheaval for insolvency practitioners as the Government seeks to ensure that creditors are not being short changed when a company enters administration or changes hands.
Business Secretary Vince Cable confirmed earlier this month that pre-pack administrations will be the main focus of the review. However, the system as a whole is coming under increasing levels of scrutinisation. 
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The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
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