PMS collapse to be investigated

Published Thursday, 06 August 2009
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A disciplinary body for accountants is to investigate the collapse of the Presbyterian Mutual Society.

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 2008.

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.

A spokesman for Moore Stephens has welcomed the inquiry.

"The inquiry, which would be considered routine in such cases, will benefit from the full co-operation and support of the firm", he said.

"It is to be hoped that the investors in the Society obtain the support from both local and national government that they deserve."

PMS members haven't received compensation for their loss.

First Minister Peter Robinson have championed their cause before Prime Minister Gordon Brown.

But the government has insisted they were not savers but investors with shares in the society.

© Press Association
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1 Comments
Erskine Holmes in BT6 0DJ wrote (1,022 days ago):
You save with a credit union by taking shares so what is the difference with PMS. The shares do not increase in value they remain at par value so they are not speculative. There is no market for Industrial & Provident shares like those in PMS so the Government knows that they are not investments.
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