Audit regulator looking into Manchester City accounting
No formal investigation has started, but the regulator is making inquiries into the case.
Audit watchdog examines Manchester City accounts
The UK audit regulator has confirmed that it is spearheading inquiries into accounting irregularities at Manchester City.
In a letter to the House of Commons business select committee, the Financial Reporting Council said it had taken over "regulatory consideration" of the matter from the Institute of Chartered Accountants in England and Wales on 30 September.
No formal investigation has been launched, but the FRC is carrying out inquiries into the case.
This follows Manchester City being found guilty by an independent commission of all charges connected to breaches of the Premier League's financial regulations between the 2009-10 and 2017-18 seasons, including artificially inflating the club's financial position by more than £900m. City are appealing the ruling.
The FRC has more resources, and broader powers, to impose sanctions if it does uncover evidence of breaches. It regularly monitors accounting standards at larger organisations such as listed public companies, but not football clubs.
The FRC can examine the conduct of BDO, Manchester City's auditors, to determine whether the audit complied with the rules.
It can also impose sanctions on individuals such as directors or employees of the Etihad club, if they belong to professional accountancy bodies.
BDO is the UK's fifth-biggest accounting firm, but says it is a market leader in football, advising more Premier League and Championship clubs than any other firm.
The independent commission that examined Manchester City found the club gave a "misleading impression" to its auditors of the scheme used to conceal the origin of shareholder funds injected into the club, and that the auditors were "unaware" of the scheme.
Manchester City have said they will appeal the commission's decision, arguing that it contains "material errors, of law, principle and fact and is unsafe".
Liam Byrne, chair of the business select committee, has called for the FRC to be given greater powers to investigate similar cases.
He wrote on X: "The regulator's letter exposes gaps in its ability to compel evidence from the club and pursue directors who fall outside its disciplinary rules.
"This raises serious questions about the powers available to hold companies and directors to account.
"The government has a responsibility to explain why reforms to close these gaps were abandoned - and what will now be done to strengthen accountability."