The UK's Financial Reporting Council has closed its investigation into the advice provided by Big Four accountancy firm KPMG to high street bank HBOS in the run up to the financial crisis, when the lender was rescued by Lloyds TSB.

The FRC said in a statement that after a "detailed investigation" into KPMG's audit of HBOS for the year ended December 31, 2007, it had "concluded that there is not a realistic prospect that a tribunal would make an Adverse Finding against KPMG".