Mr. Ed Sibley:

Davy is considered a high-impact firm meaning that it is subject to the most intrusive and intensive supervision of all the firms we supervise. That will look at supervision in a number of aspects. I am thinking about the overall governance of the firm that management controls, the frameworks compliance function, issues such as operational risk, IT risk and, crucially in the case of Davy, client assets. We need to look at how it separates these to ensure that the assets it is managing for clients are separated from its own balance sheet and its own business dealings and so on.

That is undertaken by a specific team of supervisors who supervise in an ongoing way, supplemented by inspectors and analysts. We also use what are known as skilled persons-third parties to do further work, looking at issues form a governance and control perspective. We also do sample testing in terms of transactions or, in the case of client assets, particular protections. This covers the full range of the business of the bank. We do not oversee or overlook every transaction for practical reasons but the work covers the full breadth of the business of the organisation. We will have to come back to the committee on the limited liability points. We expect board members to be fully accountable, taking responsibility for the chief direction of the firm and making sure that the risks are understood within the firm and controlled effectively. Clearly, there were shortcomings in Davy in that respect. We have been engaged intensively to address those shortcomings over time. I will ask Ms Rowland to respond to the questions about the specific investigation.