KPMG LLP is completing an internal review that is likely to result in only minor changes to the accounting firm's controls in the wake of an insider-trading scandal….
The case prompted KPMG to review its internal safeguards, which the firm has said already were "world-class." They include training for employees, a whistleblower system and monitoring of the personal investments of partners and managers. All KPMG employees must agree annually to comply with the firm's code of conduct, which prohibits insider trading and warns against practices that could lead to the release of confidential client information.
The review is nearing completion, and the firm "will be considering possible enhancements to our training and monitoring," a KPMG spokesman said. But the review "supports the conclusion that the fundamental architecture of our insider trading policies is sound and effective," he said….
There was "disappointment and a sense of betrayal" in KPMG's Los Angeles practice after Mr. London's conduct was disclosed, said a person familiar with the situation, but the practice has since "gotten back to business."
Harland Braun, Mr. London's lawyer, doesn't dispute KPMG's characterization of his client as a lone wolf, but he noted Mr. London came clean quickly once he was exposed. Mr. Braun said the confession freed up KPMG to move to prevent any damage.