Greensill auditor under investigation by watchdog

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The UK's accountancy watchdog has launched an investigation into the auditor of Greensill Capital, the collapsed financial backer of industrialist Sanjeev Gupta.

The Financial Reporting Council has begun a probe into accountancy firm Saffery Champness.

It also announced an investigation into PwC, which audited financial statements made by Wyelands Bank.

The bank was controlled by Mr Gupta but also lent money to his other firms.

The FRC said it was looking into Saffery Champness's audit of Greensill Capital's financial statements for the year to 31 December 2019.

The supply chain finance company went bust in March, raising concerns over the future of GFG Alliance, the sprawling empire controlled by Mr Gupta and his family which owns the UK's Liberty Steel.

The watchdog said it was also examining PwC "in relation to its audit of the consolidated financial statements of Wyelands Bank for the year ended 30 April 2019".

Mr Gupta bought Wyelands, formerly known as Tungsten Bank, in 2016 for £30m.

Last month, Bank of England governor Andrew Bailey said that in 2019, the Bank's Prudential Regulation Authority banking watchdog had launched an investigation into the business over concerns "connected lending in the context of the ultimate beneficial owner who is Mr Gupta".

He said the Bank notified the National Crime Agency and set out its concerns to the Serious Fraud Office in early 2020.

Earlier this year, the Bank of England forced Wyelands to hand back £210m in deposits to customers.