The Director of Corporate Enforcement, Mr Paul Appleby, who is conducting an inquiry into certain aspects of AIB Investment Managers (AIBIM), has significant powers for inquiring into possible breaches of company law.

While the Irish Financial Services Regulatory Authority (IFSRA) is the main regulator for financial institutions, Mr Appleby has developed concerns about issues to do with AIBIM which he believes might require attention from his office rather than IFSRA.

At the press conference this week to mark the launch of the 2003 annual report for the Office of the Director of Corporate Enforcement, Mr Appleby said he had sought certain documents from AIBIM, which he said he would be studying closely.

He did not wish to expand on the issues that he believed might be of relevance to his office.

But when it was put to him that one of his concerns might be that AIBIM may have assisted clients in the evasion of tax, he said that was a "reasonable" proposition but he would not comment further.

It is an offence under company law to run a business in such a way as to defraud a creditor, including the Revenue. It is also an offence to assist another party in defrauding its creditors.

If initial inquiries should reveal matters of significant concern or if Mr Appleby should encounter any lack of co-operation from AIB, then he has the power to appoint an authorised officer to AIB. He also has the power to seek the appointment of a High Court inspector.