FRC probes role of small auditors in collapse of MFS
Key takeaways
- FRC probes role of small auditors in collapse of MFS The UK audit regulator noted that a third unnamed accountant is also under investigation.
- According to a Financial Times (FT) report, MFS and a series of entities owned by founder Paresh Raja went into insolvency in February.
- Different parts of Raja’s lending businesses were audited by a number of small practices rather than through a single consolidated group audit by a large company.
FRC probes role of small auditors in collapse of MFS The UK audit regulator noted that a third unnamed accountant is also under investigation. Credit: H_Ko/Shutterstock.com. · The Accountant · H_Ko/Shutterstock.com. Ellichipuram Umesh Thu, June 11, 2026 at 9:22 PM GMT+7 1 min read The UK’s Financial Reporting Council (FRC) says it has initiated an investigation into several small accountancy practices that worked for collapsed mortgage lender Market Financial Solutions (MFS).
According to a Financial Times (FT) report, MFS and a series of entities owned by founder Paresh Raja went into insolvency in February.
Creditors that had reportedly lent more than £2bn ($2.6bn) to the group have since alleged fraud. The collapse has sharpened scrutiny of underwriting in asset-backed lending.