MOD Financial Services Limited

Background to the breach The breach was detected arising out of a themed inspection by the Consumer Protection Directorate of the Central Bank in relation to insurance intermediaries and their professional indemnity insurance cover. Penalty decision factors Professional indemnity insurance provides cover for loss suffered by customers as a result of professional negligence in relation to, for example, advice or services provided by a firm. The Central Bank views non-compliance with the statutory requirement to hold professional 2 indemnity insurance seriously, as professional indemnity insurance is an important protection for customers when dealing with regulated financial service providers. In deciding the appropriate penalty to impose, the Central Bank has taken the following into account:  the Firm took appropriate action to rectify the breach once made aware of it and now has satisfactory professional indemnity insurance in place; and  the cooperation of the Firm during the Central Bank’s investigation and in settling at an early stage in the Administrative Sanctions Procedure. The Central Bank confirms that the matter is now closed.