Page last updated at 12:26 GMT, Thursday, 6 August 2009 13:26 UK

PMS auditors 'to be investigated'

Presbyterian Mutual Society door
A disciplinary board will now examine the role of the PMS auditors.

The auditors of the troubled Presbyterian Mutual Society are to be investigated by an independent regulator.

The Accountancy and Actuarial Discipline Board will examine events leading up to the PMS being placed into administration last year.

The auditors include the number of individual accountants and the accountancy firm Moore Stephens.

The firm has welcomed the inquiry and said they consider the move 'routine'.

Up to 10,000 people were affected by a 'run' on the PMS last year.

Investors withdrew their money when it became clear the mutual society would not be covered by the government scheme which guaranteed deposits of up to £50,000 in banks.

A number of investigations were launched when the PMS went into administration in November 2008.

The Accountancy and Actuarial Discipline Board took the decision to initiate this latest probe after it received information from the Financial Services Authority and the Chartered Accountants Regulatory Board.

In a statement, the AADB said it would be looking at the key issue of the society's alleged unregulated financial activities.

This was one of the reasons given by the government for its failure to - so far - guarantee savers' investments.

A Moore Stephens spokesperson pledged the firm's full support and co-operation and said they hoped investors would be given the support of local and national government.

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