The 'Big Four' accountancy firm Deloitte was fined a record £14m for failing to manage conflicts of interest in relation to its work as corporate advisers for companies involved with MG Rover.

The Financial Reporting Council (FRC) published the final report of the disciplinary hearing against Deloitte & Touche, who were advisers to MG Rover Group, and Mr Maghsoud Einollahi, who was a partner at Deloitte & Touche.

Following the independent Tribunal hearing back in 29 July, where it was announced that all 13 allegations had been proven, the final Tribunal report and detailed findings sets out an analysis of the case and how it reached its conclusions. It can be read here .

As the FRC notes, the report sends "a strong and clear message to all members of the accountancy profession about their responsibility to act in the public interest and comply with their code of ethics".

Having heard submissions from the parties, the Tribunal imposed sanctions, with Deloitte & Touche receiving a severe reprimand and a (record) fine of £14 million, and Mr Einollahi being excluded from the profession for 3 years and receiving a fine of £250,000.

The Tribunal calculated sanctions according to guidance issued by the FRC, with a fine based on the fee income of the firm; it has been suggested that Deloitte has earned over £9m in fees in relation to two key transactions for the Phoenix Four. In addition, Deloitte will also have to pay costs.

The fine goes to the UK Consultative Committee of Accounting Bodies, an umbrella group for several professional bodies, which pays the costs of FRC disciplinary cases.

Paul George, the FRC's Executive Director of Conduct said that "The sanctions imposed are in line with the FRC's aim to ensure penalties are proportionate and have the necessary deterrent effect to prevent misconduct and bolster public and market confidence."

Deloitte again said that it disagreed with the tribunal's main conclusions, stating: "The quality of our work, carried out more than 10 years ago, has not been criticised, but the tribunal found against us on a number of points. This could have negative implications for the advice that can be provided by [accountancy body ICAEW] member firms and members, both within the profession and business."

Deloitte's lamentable response once again showed no hint of apology or regret for the firm's actions and bemoaned the possible adverse impact on what auditors could do for client firms.

Of course if that meant not giving firms advice that didn't take into account the public interest then surely there's a chance at least that the wider public might actually be better off.

Deloitte spun furiously over the summer to maintain an increasingly tenuous narrative that it helped to generate value and to keep MG Rover going for 5 years. What utter claptrap.

A £500m dowry from BMW kept the firm afloat for five years, which bought time for the local economy to adjust as the firm slid downhill without finding a partner.

Over those five years MG Rover consumed what assets it had whilst the Phoenix Four (plus One) fat cats did a heroic job in stuffing as much cash as possible into their bulging pockets before MG Rover went bust.

As the Financial Times quite rightly noted earlier this summer, "rather than firing back, Deloitte would be better advised to apologise for a disgraceful episode that - entirely predictably - blighted the lives of 6,000 Rover workers". Quite.

Remember that the Four had set up Phoenix to buy the loss-making carmaker from BMW for a token tenner back in 2000, with MG Rover coming with a £500m dowry from the German car-maker.

The Four then set up a hugely complex financial structure, with advice. The Four were able to move money around and extract value - to the tune of £42m in salaries and pensions. Project Aircraft, on which Deloitte gave the Four advice, was one small part of this structure.

The Four didn't face any criminal charges as the complex financial structure they set up to extract value before MG Rover collapsed was cleverly designed and within the rules, but they were disqualified from being directors of any company for up to six years.

So far the Phoenix Four - who Deloitte advised - have failed to stump up any money for the ex-MG Rover workers despite the Four having extracted some £42 million in pay and pensions for themselves from the firm over 2000 to 2005.

So I welcome the FRC's work (the FRC has pursued this diligently for years now), the Tribunal's decision, and the record fine. The work of the FRC is in essence the only substantive follow up to what was the biggest collapse in recent British Business history.

Recognising that the FRC has a huge regulatory job to do, and that some of the £14m needs to go to help it in its work, what I'd now like to see is some of this money going to the Rover Trust Fund to compensate the workers and their families who lost out when the firm went bust.

They lost their jobs and whilst many later found work, our research showed many earning significantly less than when at MG Rover.

Let's not forget the workers.