TAINTED WATCHDOG

THE watchdog chaired by Sir Win Bischoff is often criticised for overlooking misbehaviour and hiring people from firms it supervises.

The Financial Reporting Council (FRC) is meant to keep accountants in check.

But it earlier this year dropped a probe into KPMG over the clean bill of health given to toxic bank HBOS before the financial crisis.

Bischoff is a former chairman of Lloyds, which bought HBOS as it came close to collapse. Several other senior FRC staff worked for KPMG.

It is trying to clean up its act, hiring more staff and publishing a list of links with the businesses it oversees.