Commission of Investigation (Banking Sector) Order 2010.
Statutory Instruments
Source: Statutory Instruments

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paragraphs: Order may be cited as the Commission of Investigation (Banking Sector) Order 2010.
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paragraphs: In this Order—
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paragraphs: (1) A commission is established to investigate the following specific matters considered by the Government to be of significant public concern and requiring, in the public interest, an expedited examination:
(a) the main causes of the serious failure, during the period 1 January 2003 to 15 January 2009, within each of the covered institutions, to implement and adhere to, appropriate standards and controls (including checks and balances) in the context of corporate governance and prudent risk management policy and procedures such as would have avoided the requirement for the provision of exceptional financial support from the State;
(b) the main causes for the adoption, during the period 1 January 2003 to 15 January 2009, by the Boards of Anglo Irish Bank Corporation and Irish Nationwide Building Society of business models and strategies, and the implementation by the senior managements of those institutions of business and lending practices, which resulted in those institutions experiencing severe financial distress;
(c) whether in respect of the period 1 January 2003 to 15 January 2009 the external auditors of the covered institutions commented in their audit reports or other communications to the institutions concerned on the failures referred to in subparagraph (a) or the business models and strategies and business and lending practices referred to subparagraph (b);
(d) the main causes for the failures, during the period 1 January 2003 to 28 September 2008, in the performance of the statutory roles and responsibilities of the Central Bank and Financial Services Authority of Ireland in respect of the regulation and supervision of the covered institutions and the maintenance of financial stability, in particular in relation to the supervision and oversight of corporate governance and risk management policies and practices in the covered institutions, and the relevance in that regard of any advices or directions given by the Department of Finance to the Central Bank and Financial Services Authority of Ireland in relation to its supervisory role.
(2) The Commission shall complete the report or reports required in relation to its investigation no later than 6 months from the date of its establishment.
(3) In paragraph (1) “covered institution” means an institution that is a covered institution pursuant to the Credit Institutions (Financial Support) Scheme 2008 ( S.I. No. 411 of 2008 ).
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paragraphs: The Minister for Finance—
(a) is specified as the Minister responsible for overseeing administrative matters relating to the establishment of the Commission, for receiving its reports and for performing any other functions conferred on him or her under the Act,
(b) is authorised to set the Commission’s terms of reference, and
(c) is authorised to appoint the member or members of the Commission.
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paragraphs: The Commission shall adopt and implement a working methodology or framework to ensure that any report required in accordance with the Act is completed within the period specified in Article 3(2). The methodology or framework may include or provide for such sampling techniques or selection of examples as the Commission may determine.
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paragraphs: The Commission may, as it considers appropriate, rely on the information and findings in the following reports:
(a) the Regling & Watson report (A Preliminary Report on the Sources of Ireland’s Banking Crisis) (May 2010, Klaus Regling & Max Watson);
(b) the Honohan report (The Irish Banking Crisis and Regulatory and Financial Stability Policy 2003 — 2008, a Report to the Minister for Finance by the Governor of the Central Bank) (31 May 2010).