Still no code on directors' loans, say Comptroller
THERE is still no code governing loans to directors, according to the report by the Comptroller and Auditor General (C&AG) on the Financial Regulator's response to the financial markets crisis.
"In future, it will be a requirement to disclose details of directors' loans and loans to persons connected with directors in annual financial statements and the regulator will draw up a code of conduct," the report says.
Former Anglo Irish Bank chairman Sean FitzPatrick caused consternation in December 2008 when it was revealed that he had borrowed as much as €87m from the bank between 2000 and 2007.
"The handling of disclosure of these practices related to directors' loans at the bank gave rise to concerns about the regulatory follow-up and response of the regulator," the auditor said yesterday.
An inquiry in January 2009 found that there was a breakdown of internal communications at the regulator. "If the information available from Anglo Irish Bank's quarterly returns covering large exposures had been monitored more comprehensively, the issue of directors' loans could have been identified much earlier," the C&AG said yesterday.