LONDON, June 16 (Reuters) - Top accounting firm EY and one of its employees have been fined for failing to handle a conflict of interest properly at now defunct Hellas Telecommunications.
The Institute of Chartered Accountants in England and Wales (ICAEW), an accounting body that also regulates insolvency practitioners, said in a statement it had fined EY 250,000 pounds ($390,850.00), given the accounting firm a severe reprimand and ordered it to pay costs of 95,000 pounds.
Margaret Mills, an EY partner, was fined 15,000 and received a severe reprimand, the ICAEW said.
EY accepted to become the administrator of Hellas Telecommunications after it had been its accountant during the previous three years, a breach of the ICAEW’s code of ethics aimed at stopping conflicts of interest.
“The breaches of the code set out in the heads of complaint were inadvertent, however, EY regrets that it fell beneath its usual high standards in this instance and has taken steps to help ensure that inadvertent errors similar to those which resulted in the breaches are not repeated,” EY said in a statement.
$1 = 0.6396 pounds Reporting by Huw Jones; editing by Susan Thomas