A disciplinary body for accountants is to investigate the collapse of the Presbyterian Mutual Society in Northern Ireland.
The alleged failure of the group to obtain the appropriate “regulatory authorisation” before its difficulties last year will be investigated.
The society, which has 9,500 members, went into administration in November.
A spokesman for the Accountancy and Actuarial Discipline Board (AADB) said the investigation involved: “The conduct of members and a member firm in relation to the alleged failure by Presbyterian Mutual Society Limited (PMS) to obtain the appropriate regulatory authorisation for the conduct of its business during the period from 2000 to 2008.”
The board launched its inquiry into the conduct of members of the Institute of Chartered Accountants in Ireland (ICAI) and of Moore Stephens Chartered Accountants in Northern Ireland as auditors to the PMS, in connection with events leading up to PMS being placed into administration, the representative added.
The AADB’s decision to initiate an investigation was taken following the receipt of information from the Financial Services Authority (FSA) and a reference from the Chartered Accountants Regulatory Board (CARB) on behalf of the ICAI.
So far none of the PMS members have received compensation, with the Government insisting they were not savers but investors with shares in the society.
PA