The report of the Committee established by the Irish Financial Services Regulatory Authority (the Authority) into the handling of the recent issue regarding Anglo Irish Bank has made the following recommendations to the Authority:-
- The review of the Financial Regulator's strategic regulatory approach should be advanced as quickly as possible so as to ensure that the Financial Regulator meets its statutory mandate in response to a changing regulatory environment in the EU and internationally;
- Staffing requirements should be reviewed on foot of the work being carried out by external consultants and the statutory review;
- Reporting lines within the Financial Regulator must be examined;
- The review by the Authority of the treatment of directors' loans at all financial institutions must be completed as quickly as possible;
- Any loan made to a director of a financial institution must be reviewed in greater detail. This review should especially focus on ensuring that any loans made to any business in which a director has a major interest (10% or more) are included in returns to the Financial Regulator;
- Arrangements should be made to ensure more effective monitoring of the more important prudential returns. A progress report in this regard is to be made to the Authority by the end of February 2009.