FCA hires accountancy firm BDO to help monitor Wirecard
The Financial Conduct Authority (FCA) has drafted in a team of accountants to aid with its monitoring of Wirecard.
The City watchdog has hired BDO to work on its response to the Wirecard crisis, according to Sky News.
The FCA reportedly appointed the firm to ensure the now insolvent German firm complies with a series of restrictions. This includes keeping relevant funds safeguarded in accounts overseen by British banking supervisors.
The regulator had locked accounts related to Wirecard’s UK operations last month after an alleged €1.9bn accounting fraud at its parent firm.
In a statement last week the FCA said its “primary objective all along has been to protect the interests and money of consumers who use Wirecard”.
It is unclear the details of BDO’s role in monitoring Wirecard or why the regulator has looked for external help.
The firm operates in the UK through a company called Wirecard Card Solutions and its technology is popular with payment apps such as Pockit and Anna.
Wirecard filed for insolvency last month after disclosing a €1.9bn black hole in its finances that its auditors EY said was a result of a sophisticated fraud. The German payments processing firm has faced allegations that it had relied on obscure third-party acquiring partners for the majority of its reported revenue and profit.
A number of executives have now been arrested, including former chief executive Markus Braun. The whereabouts of chief operating officer Jan Marsalek, who is being treated as a suspect, is unknown.
The FCA declined to comment. BDO was contacted for comment.