Central Bank fines financial advisers for lack of professional insurance

Move to act as deterrent and to ensure standards are met

The Central Bank on North Wall Quay in Dublin: Four retail intermediaries were each fined upwards of €1,000 for failing to hold professional indemnity insurance. Photograph: Alan Betson

The Central Bank on North Wall Quay in Dublin: Four retail intermediaries were each fined upwards of €1,000 for failing to hold professional indemnity insurance. Photograph: Alan Betson

The Central Bank has fined four financial advisors for failing to hold adequate professional insurance. It marks the first time that the regulator has entered into a settlement agreement with retail intermediaries for a breach of prudential requirements.

Four retail intermediaries were each fined upwards of €1,000 for for failing to hold Professional Indemnity Insurance (PII) over a period of time. PII policies typically provide insurance cover on what is known as a “claims made” basis. So failure to hold PII on a continuous basis means that had a consumer sought to make a claim during the period when the firm had no PII in place, the protections afforded by reglations would not have been available to them.

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