KPMG's U.K. affiliate is under investigation by the U.K.'s audit
regulator over how it monitored Bank of New York Mellon Corp.'s
compliance with rules intended to safeguard assets of the bank's
clients, the regulator said Tuesday.
The Financial Reporting Council's investigation of the Big Four
accounting firm follows an April settlement in which BNY Mellon's
London branch and international unit, both audited by KPMG, agreed
to pay 126 million pounds ($187.5 million) over related issues.
In that settlement, the U.K.'s Financial Conduct Authority said
BNY Mellon had failed to comply with rules aimed at making sure
client assets are secure and can be returned to clients if the bank
ever became insolvent.
KPMG said it would cooperate with the FRC's investigation.
"We are committed to setting the highest standards in our work,"
the firm said.
Write to Michael Rapoport at Michael.Rapoport@wsj.com
Access Investor Kit for The Bank of New York Mellon Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0640581007
Subscribe to WSJ: http://online.wsj.com?mod=djnwires