I have been advised that the liquidation of IBRC will not affect disciplinary action being undertaken by the Chartered Accountants Regulatory Board (CARB), in accordance with the Bye-Laws of the Institute of Chartered Accountants in Ireland, in relation to Ernst & Young in respect of their former role as auditors of Anglo Irish Bank. In September 2011 further to a report by the Special Investigator, Mr John Purcell, formal complaints in relation to Ernst & Young were referred by CARB’s Complaints Committee to its Disciplinary Panel. The disciplinary hearings in respect of the formal complaints are being deferred at the request of the Office of the Director of Public Prosecutions to avoid prejudicing any criminal proceedings arising out of the circumstances giving rise to CARB’s investigations into various matters in relation to Anglo Irish Bank.
Section 6 of the Irish Bank Resolution Corporation Act provides as follows:
“(6) (a) The Special Liquidation Order, and any other thing done under the Special Liquidation Order or pursuant to instructions issued or any directions given to a special liquidator pursuant to this Act -
(i) does not affect any proceedings taken, investigation undertaken, or disciplinary or enforcement action undertaken by the Bank, the Director of Public Prosecutions, An Garda Síochána, the Director of Corporate Enforcement or any regulatory authority, in respect of any matter in existence at the time the Special Liquidation Order was made or other thing was done, and does not preclude the taking of any proceedings, or the undertaking of any investigation, or disciplinary or enforcement action, by the Bank, the Director of Public Prosecutions, An Garda Síochána, the Director of Corporate Enforcement or any regulatory authority, in respect of any contravention of an enactment or any misconduct which may have been committed before the Special Liquidation Order was made or the other thing was done.
(b) In this subsection “regulatory authority” includes -
(i) the Irish Stock Exchange,
(ii) the Irish Auditing and Accounting Supervisory Authority,
(iii) a prescribed accountancy body (within the meaning of Part 2 of the Companies (Auditing and Accounting) Act 2003)(Emphasis added), and
(iv) any other authority which regulates, or which may investigate or prosecute, any person under or by virtue of any enactment, rule of law or contract.”