Jim Armitage: An apology to a speedy and efficient financial regulator

Outlook An apology is due.

I recently wrote a rather sarcastic article here about the sloth-like pace of action at the Financial Reporting Council. The accountancy regulator was, I suggested, rather tardy in deciding to launch an investigation into the activities of two ex-directors of the collapsed Torex Retail software company. This was because a full six and 11 months earlier, the pair had received stiff fraud sentences.

In the light of further information since that piece, I appreciate that I was being unreasonable.

The FRC yesterday handed down fines on Ernst & Young (or EY as it likes to be known these days) for its role in the scandalous collapse of the Farepak Christmas savings club. Farepak collapsed in 2006 – a full seven years ago. The Torex action was clearly FRC greased lightning.