The Appeal Tribunal of the Financial Reporting Council (chaired by Sir Stanley Burnton) published its decision on 30 January 2015 in the appeal by Deloitte and Maghsoud Einollahi against the decision of the FRC’s Disciplinary Tribunal arising out of the Phoenix Four’s stewardship of MG Rover in the period 2001-2002. The Disciplinary Tribunal had found the appellants guilty of all 13 charges of misconduct brought by the Executive Counsel of the FRC in relation to two transactions concerning the acquisition of MG Rover’s loan book (Project Platinum) and the treatment of MG Rover’s substantial tax losses (Project Aircraft). The Appeal Tribunal overturned 8 out of the 13 findings of misconduct, including the findings that there had been deliberate misconduct, the findings that Deloitte had acted contrary to the public interest and all the findings on Project Aircraft. It upheld the findings of misconduct on Project Platinum relating to conflicts of interest and a proposed equity stake in the joint venture acquiring the loan book. Bankim Thanki QC, leading Ben Jaffey of Blackstone Chambers (instructed by Freshfields Bruckhaus Deringer – Andrew Hart and Sarah Parkes), represented the appellants, Deloitte and Mr Einollahi. Timothy Dutton QC, leading Nicholas Medcroft of Wilberforce Chambers (instructed by Slater & Gordon), represented the Executive Counsel of the FRC. The Appeal Tribunal has reserved its decision on sanctions. The published decision can be accessed here.
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