Financial regulator launches investigation into individual over Thurrock Council operations and investment activities

The Financial Reporting Council (FRC) has launched a professional standards investigation regarding operations and "investment activities" at Thurrock Council between 2018 and 2022.

The FRC is the independent investigative and disciplinary body for auditors, accountants and actuaries and has the ability to investigate members of several UK professional bodies.

A short statement from the regulator said: "The Financial Reporting Council has commenced an investigation in relation to the conduct of a Member in relation to compliance with governance, reporting, regulations and professional standards relating to Thurrock Council's operations and investment activities for the financial years ended 31 March 2018 to 31 March 2022."

The regulator's investigation is being carried out under its accountancy scheme, which covers individual members and member firms of six professional accounting bodies.

The FRC emphasised that the undertaking does not relate to any other persons or entities.

Thurrock Council has been under the direction of commissioners since September 2022 and issued a section 114 notice in December 2022 due to a £470 million funding gap and amid debts totalling more than £1 billion.

Cllr Andrew Jefferies, Leader of Thurrock Council, said: "I strongly welcome today's announcement from the FRC. As a council, we recognise that things went very wrong. Our focus now continues to be on taking the necessary action to put that right.

"The announcement that the FRC will investigate the issues we've raised about the failings of the past is strongly welcomed by all of us working together to create a better future for the council and the borough. We will support the investigation in any way possible.

"This shows our commitment to being open and doing whatever we can to address what happened before. We are determined to work with commissioners to drive improvement and return to financial sustainability."

Dr Dave Smith, Chief Executive and Managing Director Commissioner, said: "The FRC investigation is an important step in understanding the issues the council faced as we work at pace on delivering improvements that will make a real difference for the people we serve."

Adam Carey