THE Irish Brokers' Association (IBA) looks set to relinquish its responsibility for regulating investment brokers who are members of the association.

The association has written to the Department of Enterprise and Employment asking that it be relieved of this role. It wants to do so at a time which is "mutually convenient" to the Department and the IBA. Under the Investment Intermediaries Act 1995, the IBA has the power to regulate its own members.

The move comes in the wake of several high profile cases where clients lost funds invested with brokers who were IBA members and a loss of public confidence in investment brokers.

In August, broker Mr Tony Taylor, who ran several companies, left Ireland with his wife, following complaints from investors. Earlier this year, Mr Paul Taaffe, who ran Taaffe & Associates left the country following complaints from investors whose money appeared to be missing.

The IBA's decision, which was taken by its council members last week, came as the Department of, Enterprise & Employment - which also has a role in the regulation of investment intermediaries - is conducting a root and branch review of the regulation of brokers.

It is expected that the report, which is being carried out in conjunction with an investigation into Mr Taylor's affairs, will be completed in January.

A spokesman for the IBA said last night it had written to the Department on Tuesday asking to be relieved of its self regulatory role regarding investment intermediaries. However, he stressed that the IBA would continue to regulate life assurance brokers.

The spokesman denied that this could cause confusion among the public and said many members carried out several different functions which were regulated by different bodies.

Asked why the decision had been taken ahead of the report on the regulation issue, the spokesman said it was also part of an IBA internal review.