KPMG, the special liquidators of IBRC, have retained the services of a law firm to decide whether legal action should be taken against itself as auditors of the former Irish Nationwide Building Society.

Dublin law firm Eugene F Collins have been retained to review advice given by another law firm, McCann FitzGerald, concerning legal proceedings against previous directors of Irish Nationwide.

A spokesperson for Mr Wallace and Mr Richardson told the Irish Examiner: “The decision to initiate proceedings against certain former directors of [Irish Nationwide] was taken by the former board of the society on foot of advice provided to them by their legal advisers, McCann FitzGerald.

“This advice, received prior to liquidation, was that KMPG should not be joined to the proceedings. However, questions have been raised about the joinder or otherwise of KPMG to these proceedings.”

The spokesperson said that on February 26, Mr Wallace told the Joint Oireachtas Committee on Finance that the special liquidators “were examining a different arena for managing these proceedings, including the advice and decision around whether KPMG should be included as defendant”.

Irish Nationwide had to be nationalised in 2010 with losses of €5.4bn. It was merged with Anglo Irish Bank to form IBRC, which was liquidated in February 2013.

Terry Leggett will head up the review on behalf of Eugene F Collins.

“It is the intention of the special liquidators to advise external parties on the findings and advice of Eugene F Collins once it becomes available, and to take account of this advice in further decisions on the management of these proceedings,” the spokesperson added.