Thursday 6th February, 2020
The Financial Conduct Authority has launched an investigation into M&C Saatchi after the advertising agency revealed accounting errors last year.
The FCA has asked M&C Saatchi to provide information regarding the £11.6m in accounting errors announced last December after a review by PwC.
Last year the agency issued its second profit warning in three months, leading its share price to plummet 43%.
The firm’s chief executive, David Kershaw, the chairman, Jeremy Sinclair, and executive director Bill Muirhead have already moved to strengthen financial controls.
In a bid to replace gaps in the management team the firm has appointed Gareth Davis, from Imperial Tobacco as deputy chairman along with Colin Jones, the chairman of the publishing and events business Centaur Media, as a non-executive director.
The financial watchdog has the power to fine and prosecute if it finds transgressions of financial conduct regulations.