UK Regulators Scrutinize Revolut Over Audit Flaws

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Revolut is being pressured to enhance its inner controls for monetary reporting, after the U.Ok.’s Monetary Reporting Council mentioned the FinTech’s audits had been flawed and had a excessive danger of “misstatement,” the Monetary Occasions reported Monday (Sept. 5).

The funds group had a number of key personnel losses in its danger and compliance groups prior to now few months.

“The auditors are being considerably more difficult now, as a result of they’re getting overwhelmed up by their regulators,” one of many unnamed sources instructed the Monetary Occasions.

One other unnamed supply mentioned Revolut had to enhance “unsexy issues like its again workplace and controls” as a result of it must have a bank-like tradition reasonably than a tech agency tradition.

Revolut is the unnamed “monetary providers present” whose audit by BDO was criticized by the FRC in its final report, based on unnamed sources. The BDO audit suffered from an “insufficient” method to income recognition, so there was extra danger than normal of an undetected misstatement, the FRC mentioned.

All of this comes as auditors are below stress from the regulator to withstand the calls for from corporations to log out accounts on time if the mandatory info hasn’t been offered.

In different information associated to Revolut, it has additionally rebranded its service for 6- to 17-year-olds, beforehand referred to as Revolut Junior, as Revolut <18, PYMNTS wrote.

Learn extra: Revolut Rebrands Service for Younger Individuals as Revolut <18

Revolut <18 is an account for younger individuals that may be related to their dad or mum’s or guardian’s account, meant to assist begin them on studying about finance and budgeting cash.

The app makes use of end-to-end safety and card controls to let youthful prospects monitor their exercise, get spending alerts and develop monetary duty.

With the service, mother and father and guardians can set a daily “pay day” for pocket cash and likewise add challenges for the kids to finish to get the earnings.

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