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| Tesco to be probed by Financial Conduct Authority | Tesco to be probed by Financial Conduct Authority |
| (35 minutes later) | |
| Tesco says it has been notified by the Financial Conduct Authority (FCA) that it is under investigation following its admission last week that it overstated its half-year profit guidance by £250m. | Tesco says it has been notified by the Financial Conduct Authority (FCA) that it is under investigation following its admission last week that it overstated its half-year profit guidance by £250m. |
| The supermarket giant said it would continue to co-operate fully with the FCA and other relevant authorities. | The supermarket giant said it would continue to co-operate fully with the FCA and other relevant authorities. |
| Tesco has already launched its own investigation into the issue. | Tesco has already launched its own investigation into the issue. |
| It is being carried out by Deloitte, together with Freshfields, the group's external legal advisers. | It is being carried out by Deloitte, together with Freshfields, the group's external legal advisers. |
| Last week, the UK accountancy regulator, the Financial Reporting Council (FRC), said it was "monitoring the situation closely", but would not act until Tesco's own investigation was completed. | Last week, the UK accountancy regulator, the Financial Reporting Council (FRC), said it was "monitoring the situation closely", but would not act until Tesco's own investigation was completed. |
| The FRC can issue fines for misconduct. It can also, via an independent panel, suspend individuals and firms from the professional accounting body. | |
| Falling sales | |
| Tesco has suspended four executives in connection with its accounting problems, including its UK managing director, Chris Bush. | Tesco has suspended four executives in connection with its accounting problems, including its UK managing director, Chris Bush. |
| The supermarket has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity. | The supermarket has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity. |
| It has recently undergone a high-level reshuffle. Chief executive Dave Lewis has only been in the job a month, while chief financial officer Alan Stewart, who was originally due to join the company on 1 December, had his start date brought forward and took up the post last week. | It has recently undergone a high-level reshuffle. Chief executive Dave Lewis has only been in the job a month, while chief financial officer Alan Stewart, who was originally due to join the company on 1 December, had his start date brought forward and took up the post last week. |
| The chairman of the Parliamentary Business Committee, Adrian Bailey, has described Tesco's error as "stratospheric". | |
| He told the BBC last week that the firm's former chief executive, Philip Clarke, could well be summoned to appear before his committee over the issue. |