The Financial Reporting Council (FRC) confirmed in a letter to Parliament that it took over regulatory consideration of the Manchester City case on September 30 from the Institute of Chartered Accountants in England and Wales.
Although no formal investigation has started yet, the FRC is making inquiries. This follows an independent commission's ruling that Manchester City breached Premier League financial regulations between 2009 and 2018, a verdict the club is currently appealing.
The FRC possesses greater resources and powers to apply sanctions compared to previous bodies, and it can examine whether BDO, the club's auditors, followed proper rules.
Liam Byrne, chair of the business select committee, has highlighted gaps in the regulator's powers to compel evidence and called on the government to explain abandoned reforms.
