Govt urged to sack board of Financial Authority

The Irish Small and Medium Enterprises Association (ISME) is calling on the Government to sack the entire board of the Financial Services Regulatory Authority.

On Friday, the authority's chief executive, Patrick Neary, announced his intention to retire at the end of January following an internal report into the handling of the secret loans scandal at Anglo Irish Bank.

The report highlighted a breakdown in communications in relation to the loans, followed by a lack of action from the regulator's office.

It emerged last month that some regulatory staff were aware a year ago that former Anglo Irish chairman Sean Fitzpatrick had €87m in personal loans which were hidden from shareholders.

ISME is now calling for the entire board to be sacked for "gross incompetence" in dealing with the banking sector.

It says a fresh start is needed to restore confidence in the regulatory authority.