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MPs grill fund groups over Carillion's collapse

MPs have written to the bosses of top fund and wealth management groups as part of their investigation into the collapse of Carillion.

MPs grill fund groups over Carillion's collapse

The bosses of top fund and wealth management groups are being grilled by MPs  as as part of their investigation into Carillion's collapse.  

Both the Work and Pensions Committee and the Business, Energy and Industrial Strategy Committee have written to Standard Life Aberdeen joint chiefs Martin Gilbert (pictured right) and Keith Skeoch (left), plus David Nicol, boss of wealth management group Brewin Dolphin.

BlackRock global head of financial markets advisory Charles Hatami is another to receive a letter after it emerged the fund giant was among a batch of investors shorting Carillion stock.

UBS chief Sergio Ermotti and Deutsche Bank boss John Cryan have also been contacted by MPs.  

In the letters dated on 26 January,  the committees' chairs Frank Field and Rachel Reeves said they were trying to assess the performance of the board of Carillion and whether it adhered to the corporate governance code.  

'We are also looking examine the effectiveness of the board’s stakeholder engagement and whether its major institutional investors complied with the Stewardship Code,' the letters stated. 

The committees want to know what engagement the firms had with Carillion following the publication of its 2016 annual report and  accounts and its interim results for 2017. 

'What steps did you take to influence the financial decisions of the board, what response did you receive, and what lay behind your decision to sell shares in the company when you did?,' Field and Reeves added. 

The bosses have been given until tomorrow to submit their responses.

The news comes after earlier this week the UK's Financial Reporting Council (FRC) launched an investigation into the role accountancy giant KPMG played in Carillion's collapse. 

The FRC wants to determine whether KPMG breached any rules or ethical standards when acting as auditors for Carillion. 

KPMG intends to cooperate fully with the FRC investigation, insisting it acted 'appropriately and responsibly'.  

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Charles Stanley drops Woodford from fund buy list

by Daniel Grote on May 22, 2018 at 10:57

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