KPMG Fights ‘Gargantuan’ $16 Million Fine Sought Over BNY Mellon

  • U.K.’s Financial Reporting Council suggests fine at hearing
  • KPMG says its sanction should be a fraction of FRC request

A logo sits on display outside the KPMG offices in the Canary Wharf district in London.

Photographer: Simon Dawson/Bloomberg

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Accounting giant KPMG should be fined 12.5 million pounds ($15.9 million) or more for misconduct over reports on Bank of New York Mellon Corp., a U.K. regulator said Tuesday. KPMG said the fine should be just a fraction of that size, at 1.4 million pounds.

The Financial Reporting Council’s request -- and KPMG’s response -- were outlined Tuesday at a hearing in London, where a tribunal will decide what’s an appropriate sanction for the case. KPMG, which has admitted misconduct, would get a 30 percent discount on the fine for cooperation with the regulator.