Central Bank fines Aviva firms €2.4m

Aviva has been fined more than €2.4 million by the Central Bank after it breached regulations at two of its subsidiaries.

Aviva Insurance Europe and Aviva Life & Pensions were both hit with fines of more than €1.2 million each for failing to comply with regulations.

The Central Bank said the penalties were imposed as the administrative procedures and internal control mechanisms in respect of its stock lending activity were inadequate in both firms.

Among the breaches were failing to review investment policies on an annual basis, failed to adopt an adequate investment policy or adequate investment objectives for stock lending, and failing to ensure there adequate reporting and internal control systems in place to monitor the management of stock lending.

The breaches were uncovered following a Central Bank survey into the use of liquidity swaps. Investigators then carried out an inspection of the firm'’ use of liquidity swaps, and discovered the breaches.

In a statement Aviva said it accepted the Central Bank’s finding that its systems and controls in respect of stock lending were inadequate.

“When these inadequacies were identified, Aviva took prompt action and has now ceased stack lending,” the statement said.

The company said no money was lost by its companies or by its customers as a result of stock lending.