UK Financial Regulator Fines PwC, Partner over Audit of Babcock International

04:27 AM EDT, 07/16/2026 (MT Newswires) -- The UK's Financial Reporting Council imposed sanctions on PricewaterhouseCoopers and audit engagement partner John Waters in relation to the audit of Babcock International Group's (BAB.L) annual results for fiscal 2019 and 2020. The regulator fined the consultancy 3.2 million pounds sterling and the auditor 59,062 pounds and ordered them to publish severe reprimand statements and declare that the audit reports did not satisfy the relevant requirements, according to a Thursday release. It also ordered PwC to take action to prevent the recurrence of the breaches. The statutory audit firm and the statutory auditor both admitted serious and numerous breaches in their audits of the British aerospace and defense company. The penalties were significantly discounted due to the respondents' cooperation, admissions, and early disposals.