BFI fund audits withdrawn

The former auditor of several funds from troubled fund manager Bridging Finance Inc. (BFI) has retracted its audit reports on those funds.

In a letter to BFI investors, the firm’s court-appointed receiver, PricewaterhouseCoopers Inc. (PwC), reported that the former auditor of several BFI funds, KPMG LLP, has withdrawn its reports on the funds’ financial statements for fiscal 2019 and 2020.

Previously, PwC reported that KPMG had resigned as the funds’ auditor.

“Prior to KPMG’s resignation and withdrawal of its auditor’s reports, we had notified KPMG of efforts to analyze and assess claims that the Bridging funds and/or unitholders may have against various parties, including KPMG, arising out of prior events related to Bridging and the Bridging funds,” PwC said in its letter.

“These efforts continue,” it added.

KPMG declined to comment on the news, citing its ethical obligations to refrain from discussing confidential client issues.

PwC was appointed receiver for BFI and its funds by the Ontario Superior Court of Justice at the request of the Ontario Securities Commission (OSC), after the regulator raised concerns about transactions involving certain BFI funds.

The OSC has not brought any enforcement action against BFI, although the regulator has ordered a temporary cease trade of the funds that expires at year’s end.

The PwC letter also noted that PwC intends to file an update on the financial condition of the funds next week. Since taking over as receiver, the firm has been unable to provide a net asset value for the funds.

Over the next couple of weeks, PwC will also continue to analyze possible bids for the firm, its funds and assets.

“In light of the complexities associated with certain of the [bids], we expect that our review of [bids] and discussions with representative counsel in respect of the [bids] will continue for the next two [to] three weeks,” it said in the letter.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.