Watchdog probes KPMG's Bank of New York Mellon conduct

The UK's accountancy watchdog has opened an investigation into how KPMG reported on Bank of New York Mellon's international business.

The Financial Reporting Council will investigate how KPMG confirmed that the bank's UK and international branch complied with UK customer protection rules from 2007 to 2012.

The probe was prompted by a Financial Conduct Authority fine of the bank.

BNY Mellon was fined £126m in April for failing to protect customer assets.

The fine was the eighth largest imposed by the FCA, and was levied over BNY Mellon's London branch failure to keep customer money safe during the financial crisis.