OSC alleges audit failures by KPMG, seeking up to $40M in penalties

Logo of the chartered accountant company KPMG is pictured in Berlin, Germany. THE CANADIAN PRESS/AP-Michael Sohn

TORONTO — The Ontario Securities Commission is alleging KPMG failed as an auditor in its 2019 and 2020 reports on four funds managed by Bridging Finance Inc. and is seeking up to $40 million in penalties.

The regulator alleges the firm failed to perform sufficient and appropriate audit procedures over the most critical aspect of the financial statements – the valuation of the loans held within the funds.

Bridging Finance Inc. and all its assets were put into receivership by the Ontario Superior Court of Justice on April 30, 2021, one month after the last of KPMG’s auditor’s reports was issued.

The OSC has filed an application for an enforcement proceeding against KPMG LLP at the Capital Markets Tribunal.

KPMG Canada spokeswoman Roula Meditskos said the firm disagrees with the OSC’s allegations and that it will vigorously defend its work throughout this process.

She said KPMG takes its role and responsibilities as auditor seriously and remains committed to the highest standards of audit quality and professionalism.

This report by The Canadian Press was first published April 1, 2026.