According to a report on its website, the Financial Reporting Council (FRC UK) has sanctioned KPMG LLP and one of its Partners for findings of misconduct which the firm agreed to.

According to the website,

“The Financial Reporting Council (FRC) today publishes the report of the disciplinary hearing in relation to KPMG LLP (‘KPMG’) and Mr James Marsh, Chief Operating Officer of KPMG, regarding admitted breaches of the Ethical Standards for Auditors.

Following agreement to allegations by KPMG the Tribunal made four findings of Misconduct against KPMG relating to:

its failure to require Mr Marsh to sell his shares in Cable and Wireless Worldwide PLC (‘CWW’), which was at that time an audit client of the firm, upon his appointment as Partner in 2011;
the lack of sufficient or appropriate procedures to prevent or identify the failure on the part of Mr Marsh to sell the shares;
the lack of an appropriate control environment that placed adherence to ethical principles and compliance with Ethical Standards above commercial considerations; and
the subsequent appointment of Mr Marsh to the role of Chief Operating Officer when less than two years previously he had been in a position to exert significant influence over the financial statements of CWW.
The Tribunal made a finding of Misconduct against Mr Marsh in relation to his failure to dispose of his shares in CWW when he became a Partner in KPMG.

In relation to KPMG, the Tribunal imposed a Reprimand and, before discount for admissions, the Tribunal determined a Fine of £350,000 (subsequently adjusted by 35% to £227,500 to reflect KPMG’s admissions). In relation to Mr Marsh, the Tribunal imposed a Reprimand and before discounts for admissions, the Tribunal determined a Fine of £60,000 (subsequently adjusted by 35% to £39,000 to reflect Mr Marsh’s admissions). KPMG agreed to pay the majority of the FRC’s costs in relation to the case.”

source: http://disclosureanalytics.info/