Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

infomatique via Flickr/Creative Commons
fined

Aviva fined €2.45 million by the Central Bank for breached regulations

Two subsidiaries of Aviva have been fined €1.225 million each for breach of regulations.

AVIVA HAS BEEN fined more than €2.4 million by the Central Bank for breaches of regulations at two of its subsidiaries.

The two fines of €1.225 million relate to Aviva Insurance Europe SE and Aviva Life and Pensions Ireland.

The Central Bank said the penalties were imposed because administrative procedures and internal control mechanisms in respect to stock lending activity were inadequate in both subsidiaries.

The Central Bank said several breaches were identified, including:

  • Failing to ensure that adequate reporting and internal control systems were in place to monitor the management of stock lending
  • Failure to adopt an adequate investment policy or adequate investment objectives for stock lending
  • Failure to impose sufficient parameters for stock lending on its investment managers

The breaches were uncovered during a survey into the use of liquidity swaps by the Central Bank.

The Central Bank of Ireland’s Fiona Muldoon, Director of Credit Institutions and Insurance Supervision, and Peter Oakes, Director of Enforcement, issued a joint comment stating:

Where a firm outsources investment activity, it must ensure that it has adequate investment policies, procedures and quantitative parameters to manage that investment activity in a way that is appropriate to the firm’s balance sheet, and that it has sufficient information to allow it to properly monitor and control that activity.
It is inadequate and unacceptable for firms to rely on group controls or group limits. The Central Bank reminds firms that they remain responsible for all regulatory obligations notwithstanding any reliance upon group controls or group limits.

Read: Central Bank confirms North Wall purchase

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
7
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.