Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

Yes, it's coming up there now. It's on your screen there. In your statement to the joint committee, Mr. Neary, you stated that you were aware ... that you were "unaware of any incidences where supervisory issues uncovered by statutory auditors were escalated to the Authority." In the context of that statement, can you comment upon the three pieces of evidence noted below and I'll go through them, okay?

These are correspondence of statutory auditors to the IFSRA in respect of issues uncovered in financial institutions during the course of the statutory auditor ... audit between 2003 and 2004. In 2003:

In respect of institution X, following items were noted:- "no detailed procedures manuals" were in place

- "no formalised controls in place covering the introduction of new products"

- Inadequacies and the monitoring of "moratorium accounts"

- Insufficient attendance at credit committee meetings

- Lack of documentation [and] supporting provisions

- Lack of overall review of credit portfolio.Again in 2003:

In respect of institution Y following items were noted:- Errors in annual facility review processes

- Errors in recent capital adequacy return

-High pace of growth in institution implies "management of resources and controls of this expanding environment is essential." And then in 2004 and that year ending 2003:

In respect of institution X following items were noted:- "understatement of non-performing assets"

- Error in Large Exposure Return for March 2003

- Error in Large Exposure Return for September 2003

- Large exposures to 2 particular sectors noted in sectoral return for 2003

Can you comment on whether, in your opinion, the response of the Financial Regulator to these issues was sufficiently robust?