Hitachi Capital Insurance Europe Limited

The Central Bank of Ireland has entered into a Settlement Agreement on 27 March 2012 with Hitachi Capital Insurance Europe Limited, a regulated financial services provider, in relation to a breach of section 24(1) of the Insurance Act 1989 (as amended). The fine imposed on this firm reflects the fact that:  the firm is no longer writing new business since July 2009 and is in run-off; and  there was no loss to policyholders as a result. Failure to comply with undertakings given by a firm is considered very serious by the Central Bank. Failure by firms to comply with the maintenance of prudential capital requirements is regarded by the Central Bank as particularly serious as it puts policyholders at unnecessary risk. Entities which fail to comply with undertakings given to the Central Bank can therefore expect a vigorous application of our enforcement effort. As stated in our Enforcement Strategy, enforcement action can have a powerful deterrent effect on smaller entities where we do not have a close supervisory relationship. In line with the Central Bank’s published risk-approach to supervision and the new framework for the supervision of regulated firms (“PRISM”), enforcement actions should be seen by low impact firms as clear signals of the Central Bank’s aim to change behaviours of these firms in a way that improves standards across the industry.”