The CEO of Shakespeare Martineau has been ordered to pay £75,000 after admitting misconduct in his previous role at an accountancy firm which collapsed.
Andy Raynor took over as CEO of Midlands-based firm Shakespeare Martineau in 2015 after two years as its commercial director. But before that he was Chief Exec of accountancy firm RSM Tenon. Under his eight year tenure the company pursued a policy of merger and expansion which saw it become the UK's seventh largest accountants, with 2,600 employees. In August 2013, a few months after Raynor left, its shares were suspended and it fell into insolvent administration.
This week the Institute of Chartered Accountants of England & Wales has released a disciplinary 'Formal Complaint' in connection with RSM Tenon's 2010/11 financial statements, which it found were not prepared, audited or approved properly. It revealed that Raynor has admitted that his conduct "fell significantly short of the standards reasonably to be expected" of a chartered accountant in relation to his approval of the dodgy statements.
Raynor, a non-lawyer, admitted that he "failed to act in accordance with the fundamental principle of professional competence and due care" contained in the ICAEW Code of Conduct. He also admitted that he "failed to obtain the necessary level of assurance" in relation to the accounting treatment of bonus accruals, and a lease, and the sign off of the financial statements. Raynor agreed to pay a fine of £26,500, reduced from £40,000 after mitigation and a settlement discount, plus a further sum of £50,000 as a contribution to costs.
An outraged source told RollOnFriday it was "so wrong" that the CEO of Shakespeare Martineau "continues in situ irrespective of this report". A spokesman for the firm told RollOnFriday, "We consider these events to be in the past and unrelated to the role that Andy holds here. He has the full support of our Firm as he continues to lead, grow and develop our business”".
Tip Off ROF
Andy Raynor took over as CEO of Midlands-based firm Shakespeare Martineau in 2015 after two years as its commercial director. But before that he was Chief Exec of accountancy firm RSM Tenon. Under his eight year tenure the company pursued a policy of merger and expansion which saw it become the UK's seventh largest accountants, with 2,600 employees. In August 2013, a few months after Raynor left, its shares were suspended and it fell into insolvent administration.
This week the Institute of Chartered Accountants of England & Wales has released a disciplinary 'Formal Complaint' in connection with RSM Tenon's 2010/11 financial statements, which it found were not prepared, audited or approved properly. It revealed that Raynor has admitted that his conduct "fell significantly short of the standards reasonably to be expected" of a chartered accountant in relation to his approval of the dodgy statements.
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-Not yet, no -Or go into administration |
Raynor, a non-lawyer, admitted that he "failed to act in accordance with the fundamental principle of professional competence and due care" contained in the ICAEW Code of Conduct. He also admitted that he "failed to obtain the necessary level of assurance" in relation to the accounting treatment of bonus accruals, and a lease, and the sign off of the financial statements. Raynor agreed to pay a fine of £26,500, reduced from £40,000 after mitigation and a settlement discount, plus a further sum of £50,000 as a contribution to costs.
An outraged source told RollOnFriday it was "so wrong" that the CEO of Shakespeare Martineau "continues in situ irrespective of this report". A spokesman for the firm told RollOnFriday, "We consider these events to be in the past and unrelated to the role that Andy holds here. He has the full support of our Firm as he continues to lead, grow and develop our business”".
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Also in other news mass redundancies expected in their London office and closure of their MK office as they can't find merger partners
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