# Chartered Accountants Anglo Investigation



## QED (20 Feb 2009)

The Chartered Accountants Regulatory Board (CARB) issued the following Press Release this morning. I haven't seen or heard this reported yet but I think it is a welcome development. -

Statement by the Chartered Accountants Regulatory Board
The Complaints Committee of the Chartered Accountants Regulatory Board (CARB), the
body established by the Institute of Chartered Accountants in Ireland (ICAI) to regulate
its members, has announced the appointment of Mr. John Purcell, former Comptroller
and Auditor General, as its Special Investigator into the issues concerning directors loans
and other matters at Anglo Irish Bank, to investigate possible breaches of ICAI Bye-Laws
and rules of professional conduct by its members/member firms and specifically:
(a) certain loans made by the Bank to Mr. Sean Fitzpatrick, a director of the Bank
(and a member of the Institute), and actions taken by him in relation to such loans
in the years prior to the disclosure of same by Mr. Fitzpatrick in 2008 and the
treatment of same in the financial statements of the Bank and the subsequent
resignations of Mr. Sean Fitzpatrick and Mr. David Drumm and Mr. William
McAteer, being two other directors of the Bank and each being a member of the
Institute; and
(b) the performance of the Bank’s auditors, Ernst & Young, a member firm of the
Institute, in connection with the audit of the accounts of the Bank in relation to the
said loans to Mr. Fitzpatrick in the years prior to the disclosure of same by Mr.
Fitzpatrick.
The appointment of a Special Investigator follows from the determination of the
Complaints Committee at its meeting in January 2009 that the issues under consideration
constituted a matter of public concern as per Bye-Law 71 of the ICAI Bye-Laws.
The Complaints Committee is considering separately the involvement of ICAI members
in issues raised concerning certain transactions between Anglo Irish Bank plc and
companies in the Irish Life and Permanent Group.


Ends


As a member of the ICAI, I think that the future of self regulation very much depends on the quality of this investigation and the sanctions imposed *IF* any breaches are uncovered.


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## Conan (20 Feb 2009)

I bet the Anglo 3 are really worried now. They might be thrown out of the Institute! Wow, the ultimate sanction. That will teach them.


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## QED (20 Feb 2009)

Conan said:


> I bet the Anglo 3 are really worried now. They might be thrown out of the Institute! Wow, the ultimate sanction. That will teach them.




I actually do think that it would worry them. 



And also the reputation of Ernst and Young could be severely damaged (at least in ireland).


See also http://www.rte.ie/business/2009/0220/anglo2.html


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## foghorn (20 Feb 2009)

Frankly, does anyone feel the public are going to be *at all* convinced by a report from a self-regulatory body after the Financial Regulator fiasco?


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## QED (20 Feb 2009)

foghorn said:


> Frankly, does anyone feel the public are going to be *at all* convinced by a report from a self-regulatory body after the Financial Regulator fiasco?




It will be very difficult - But it could work if the process is seen to be fair and objective and there are real sanctions for breaking the rules.


What we don't need is a wishy-washy report blaming 'procedures' and hiding behind 'Legal advice' etc. - we need names and details of exactly what went wrong. But will we get this ??


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## jquinn (20 Feb 2009)

Careful - if we shout too loudly we could end up with another tribunal


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## VOR (20 Feb 2009)

This is to be welcomed. 
I would like to see the Law Society look in to the actions of the solicitors who allowed the bank to use its assets to give an undertaking for loans to Sean F.


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## hopalong (21 Feb 2009)

does anyone know how much the loans were to the directors who resigned from anglo other than fitzpatrick.


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## Bronte (23 Feb 2009)

QED said:


> As a member of the ICAI, I think that the future of self regulation very much depends on the quality of this investigation and the sanctions imposed *IF* any breaches are uncovered.


 
Self regulation AGAIN, that's really scary.  What sanctions would they impose?  Rap on knuckes, don't do it again and here's your golden handshake and for the public - we've looked into it, they were bold boys, we've punished them and it won't happen again.


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## foghorn (23 Feb 2009)

QED said:


> It will be very difficult - But it could work if the process is seen to be fair and objective and there are real sanctions for breaking the rules.
> 
> 
> What we don't need is a wishy-washy report blaming 'procedures' and hiding behind 'Legal advice' etc. - we need names and details of exactly what went wrong. But will we get this ??


 
Self regulation doesn't work. End of. Members of golden circles aren't going to punish their golfing buddies more than giving them a symbolic rap on the knuckles.


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## Sunny (23 Feb 2009)

Their powers are limited but it is still a welcome step. For example publically announcing that you are investigating the role of one of the big 4 in the form of Ernst & Young is not something that these bodies take lightly and is potentially very embarassing for Ernst & Young.


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## Sunny (23 Feb 2009)

sorry


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## Mpsox (23 Feb 2009)

foghorn said:


> Self regulation doesn't work. End of. Members of golden circles aren't going to punish their golfing buddies more than giving them a symbolic rap on the knuckles.


 
I did hear on the news last week that the institute could fine them up to €30k, don't know if that is correct or not

However, a negative finding on Earnst and Young could possibly have ramifications for any law suits bought on Anglo as a result of all of this


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