The UK's Financial Reporting Council (FRC) has confirmed it is conducting inquiries into accounting irregularities at Manchester City, following the club's guilty verdict on charges of breaching Premier League financial rules.

In a letter addressed to the House of Commons business select committee, the FRC confirmed it assumed "regulatory consideration" of the case from the Institute of Chartered Accountants in England and Wales on 30 September. No formal investigation has been launched at this stage, but the regulator is actively making inquiries.

What the independent commission found

An independent commission previously found Manchester City guilty of all charges relating to violations of the Premier League's financial regulations across the 2009-10 to 2017-18 seasons. Among the findings was that the club had artificially inflated its financial position by more than £900 million. City are appealing the verdict, arguing that the commission's decision contains "material errors, of law, principle and fact and is unsafe."

The commission also concluded that Manchester City gave a "misleading impression" to its auditors about the scheme used to conceal the origin of shareholder funds injected into the club. The auditors, BDO — the UK's fifth-largest accounting firm and a self-described market leader in football — were found to have been "unaware" of the scheme.

What powers does the FRC hold?

The FRC carries greater resources and broader sanctioning powers than its predecessor body in this case. While it does not routinely oversee football clubs — its typical remit covers larger listed public companies — it can examine whether BDO's audit of Manchester City complied with professional standards. It can also pursue sanctions against individual directors or employees of the Etihad club if they hold membership of professional accountancy bodies.

BDO declined to comment.

Calls for stronger regulatory powers

Liam Byrne, chair of the business select committee, used the FRC's letter to highlight what he described as significant gaps in the regulator's current powers. Writing on X, Byrne warned that the regulator lacks the ability to compel evidence from clubs or pursue directors who fall outside its disciplinary framework.

"This raises serious questions about the powers available to hold companies and directors to account. The government has a responsibility to explain why reforms to close these gaps were abandoned — and what will now be done to strengthen accountability," Byrne wrote.

The case continues to draw scrutiny well beyond the football world, raising broader questions about financial governance and auditing standards across professional sport in the United Kingdom.