FSA Reveal Tax and Accounting Concerns

It has been revealed that earlier this year the FSA revealed concerns about Barclays’ approach to interpreting rules and regulations, citing accounting and tax issues.

As part of the evidence being used within the inter-banking lending rate Libor investigation – which is being carried out by the Treasury Select Committee – letters between the chairman of Barclays, Mr Agius, and the FSA have been published revealing that within a letter from April this year, FSA chairman Lord Turner revealed FSA’s concerns.

Within the letter, Lord Turner raised concerns of the “cumulative impression created by a pattern of behaviour over the last few years” where the FSA believed the bank often appeared to be using complex structures or arguments which were at the aggressive end of interpretation of the relevant rules and regulations.

The letter goes on to cite examples illustrating its concerns, with Lord Turner questioning the bank’s tax management, with Lord Turner, saying in the letter: “But as I know you recognise, and whatever the extent of advice which Barclays received in advance, the net impact has clearly been unfavourable to the degree of external trust in Barclays’ approach to issues such as tax, regulation and accounting issues.”

At Milsted Langdon, we appreciate that the FSA’s rules are extensive and complex and even the largest businesses can find it challenging to keep up to date with ongoing changes to its policies and rules; which is why our team are always on hand to offer advice, support and guidance throughout every step of running a business and complying with FSA legislation.

As an accountant, Sarah Jenkins, specialises in management accounting, business development and financial reporting.

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