FRC: Sushovan Hussain, former CFO of Autonomy Corporation plc
27 Nov 2018 12:00 PM
The Financial Reporting Council (FRC) announces that the Formal Complaint against Sushovan Hussain, former Chief Financial Officer of Autonomy Corporation plc, has been stayed, pending the outcome of his intended appeal against his conviction on 16 counts of fraud in the United States District Court for the Northern District of California.
Mr Hussain has consented to an order suspending him from membership of the Institute of Chartered Accountants in England and Wales (ICAEW) until the Formal Complaint against him can be heard.
The Order for Stay dated 2 November 2018, Interim Order and Report of the Tribunal in relation to the Interim Order, both also dated 2 November 2018, have been published.
The other Formal Complaints in relation to Autonomy Corporation plc, announced on 31 May 2018, are unaffected by the stay actions involving Mr Hussain.
Autonomy IO Statement of Reasons
Stay Order
Interim Order
Notes to editors:
- The FRC’s mission is to promote transparency and integrity in business. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the competent authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality.
- The FRC is the independent, investigative and disciplinary body for accountants and actuaries in the UK dealing with cases which raise important issues affecting the public interest. In brief, the stages of the disciplinary process under the Accountancy Scheme are:
- Decision to investigate
- Investigation
- Decision whether to bring enforcement proceedings against Member Firm or Member and, if so decided, referral to Disciplinary Tribunal
- Tribunal hearing
- Determination and imposition of sanction and/or costs orders
Under the Accountancy Scheme the FRC can start a disciplinary investigation in one of two ways: (i) the professional bodies can refer cases to the FRC; and (ii) the FRC may decide of its own accord to investigate a matter. The Conduct Committee will consider each case identified or referred to it and decide whether or not the criteria for an investigation are met.
The criteria are specified in paragraph 5(1) of the Accountancy Scheme. A Member or Member Firm shall be liable to investigation under this Scheme only where, in the opinion of the Conduct Committee the matter raises or appears to raise important issues affecting the public interest in the United Kingdom and there are reasonable grounds to suspect that there may have been Misconduct or it appears that the Member or Member Firm has failed to comply with any of his or its obligations under paragraphs 14(1) or 14(2) of the Scheme.
Investigations are conducted by Executive Counsel and the Enforcement division.
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