IFSRA statement: An independent investigation into foreign exchange charges at AIB, established under the approval of the Irish Financial Services Regulatory Authority (IFSRA), is being carried out by external accountants and is overseen by an independent assurer, Mr Lauri McDonnell.

Inspectors from the Financial Services Regulator continue to undertake their own work on these issues and will liaise closely with the external independent investigators as necessary.

As the investigative process continues, other related issues may emerge, as has happened in recent days. In some of these cases, the Financial Services Regulator has already been actively engaged for some time; in others, we will pursue them as appropriate as part of the current process.

The Financial Services Regulator is also engaged with another investigation, relating to certain matters concerning AIB Investment Managers Ltd (AIBIM) during the period 1989 to 1996. These matters were brought to our attention in September 2003 by AIB, following the normal and correct regulatory compliance channels.

These matters concern taxation, inappropriate dealing transactions and other regulatory issues.

Since they first came to light nine months ago, the Financial Services Regulator has been fully and actively working with AIB on these issues, ensuring that they are comprehensively addressed. We are also working closely with other relevant authorities.

Once informed of these issues, the Financial Services Regulator agreed an investigation mechanism with AIB.

When this initial investigation was completed, we agreed the terms of a follow-up and appointed an independent person - Mr Maurice O'Connell, former governor of the Central Bank - to oversee that investigation, which has now been completed.

The Financial Services Regulator maintained close ongoing contact with Mr O'Connell throughout this process and also worked closely with other relevant authorities as necessary.

We note that AIB has already taken action on some of these issues, including disciplinary measures. We also note that AIB has committed to pay restitution plus interest to affected clients.

Any improper practices carried out in the financial services industry are totally unacceptable and are taken very seriously by the IFSRA.

All of the issues raised by the investigations will be considered by the IFSRA comprehensively at the end of the investigative process. It will then decide what actions need to be taken in this regard.

It is very important, however, that the Financial Services Regulator does not engage in public debate about these various matters that have been or are now all under active investigation until they have been fully verified and validated and until our work is complete.

Following the completion of the current investigative process, the IFSRA will consider what actions may be required and will report in public as necessary.

Until that process is completed, and in order to facilitate the ongoing investigation, it is not appropriate to make any further public comment.