FRC investigates Deloitte audits of Lookers

The UK’s Financial Reporting Council (FRC) said on Friday it has commenced an investigation into the audits by Deloitte LLP of the financial statements of Altrincham-based car dealership Lookers plc for the years ended December 2017 and 2018.

“The decision was made at a meeting of the Conduct Committee on 23 February 2021,” said the FCA.

“The investigation will be conducted by the FRC’s Enforcement Division under the Audit Enforcement Procedure.”

On March 2, Lookers published a stock exchange update about an investigation by the enforcement division of the Financial Conduct Authority (FCA) into the group’s sales processes between January 1, 2016, and June 13, 2019.

The FCA has advised the board of its decision to close the investigation against Lookers Motor Group Limited, the group’s FCA regulated entity, for the possible mis-selling of regulated products, and associated issues relating to potential customer detriment during the period,” said Lookers.

In closing the case, the FCA further advised the board that it does not intend to use its statutory powers to apply any sanction against the group in relation to the matters under investigation.

“However, the FCA made its concerns clear relating to the historic culture, systems and controls of the group.

“The board fully accepts the FCA’s comments and is committed to continue the progress made to date in transforming both culture and the customer experience.

“The group continues to have an open and cooperative relationship with the FCA Supervisory team.

Having already invested in a major remediation plan, including new systems, controls and process improvements, the board remains fully committed to the group’s ongoing investment programme, driving the creation of the right culture, working towards an industry leading customer experience.”