AADB Resolves Not to Take Further Action Against Ernst&Young
AADB has resolved not to undertake any action against Ernst& Young any further, post the investigation carried out by it into the role of auditor in the almost collapse of the Equitable Life Assurance Society.
In the month of June in 2010, Ernst& Young was slapped with a fine of £500,000 as well as an additional amount of £2.4m following which the company as well as its ex partner Kevin McNamara were blamed and criticized by the Joint Disciplinary Tribunal, which was previously responsible for overseeing the discipline related matters of accountancy.
Former Ernst& Young partner Gregor Stewart and John Bannon who had earlier been a part of Ernst &Young, were two of the major subjects of investigation carried out by the Accountancy and Actuarial Discipline Board.
AADB stated that after the investigation came to an end, the board has come to the conclusion that there isn’t any real chance regarding a Tribunal making any unfavorable discovery against the actuary in question. The board also stated that this is the reason why it won’t take any action and will close the case down.
It also gave a similar conclusion with regard to the investigations carried out by it in matters pertaining to conducting of some of the actuaries of the Government Actuary’s Department concerning the provisioning of suggestion by or on behalf of the Government Actuary’s Department to prudential regulators as far as The Equitable Life Assurance Society is concerned.
Ernst & Young has filed an application against a much more harsh judgment given 2 years back. In the year 2008, Ernst & Young had secured a particular injunction that prevented the disclosure of a JDT report. This particular injunction had barred evidence related to Stewart and Bannon from being given to their respective professional groups for the purpose of investigation. But the ban was removed after a period of 6 months.
In the year 2008, JDT passed a ruling that Ernst & Young as well as McNamara were guilty of over twenty instances for showing less professional capabilities at the time of carrying out audits of Equitable’s accounts for the years 97, 98 as well as 99.