Regulatory board to examine directors’ loans

THE Chartered Accountants Regulatory Board is to examine the issue of directors’ loans in the wake of the €87 million in loans built up by former chairman Sean FitzPatrick.

The independent board, which was established by the Institute of Chartered Accountants in Ireland to regulate its members, said it will be examining the circumstances around the issue of inappropriate directors’ loans at Anglo Irish Bank and the role played by any members of the institute.

“In this process CARB will obviously seek to engage with other statutory regulators and oversight bodies,” a spokesman said.

Meanwhile, Ernst and Young, which completed the last annual report on behalf of Anglo Irish Bank, said it will not comment on individual clients.

However, it is understood the company did not know about the loans and only found about them when the news broke on Thursday evening.

One source said the existence of such a loan was not the kind of thing that would be exposed in the completion of the annual report.

The Irish Association of Investment Managers (IAIM) said it was “surprised and disappointed” at the circumstances which led to the resignation of Mr FitzPatrick and the subsequent decision by the bank’s chief executive to tender his resignation.

“Investors expect the highest levels of transparency in dealings by directors of listed companies,” an IAIM spokesman said. “The IAIM will be writing directly to the new chairman to set out its concerns in respect of the matter.”