Irish regulator ring-fences fines to set up €4m legal war chest
The Irish Financial Regulator has set up a €4m war chest to fight legal battles using the fines imposed on Quinn Insurance and its former chairman, Sean Quinn, The Irish Post reports.
Quinn Insurance was fined €3.25m and Sean Quinn €200,000 after an investigation into suspected regulatory breaches arising from Quinn’s controversial investment in Anglo Irish Bank.
Regulator acting chief executive Mary O’Dea has ring-fenced the cost of future legal actions, as well as funding special investigations into regulated firms, from its annual budgetary requirements.
Not possible to anticipate
‘‘From time to time, the Financial Regulator may be involved in legal action or special investigations which could involve the [Central Bank and Financial Services] Authority in significant costs. It is not possible to anticipate when such cases may arise or the resulting level of costs,” the regulator said.
‘‘Accordingly, the authority considers it prudent to ensure that adequate resources are available, and to spread such costs over a number of years.”
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