Smyths Insurance Brokers Limited and Mr Raymond Smith

Background to the Contraventions The breaches were brought to the Central Bank’s attention by the PCM at the commencement of an inspection of the Firm in October 2010. The PCM repaid amounts due to the client premium account the day before the inspection. Following this inspection, an examination was carried by the Central Bank’s Enforcement Division. Sanction decision factors The taking of this case and the sanctions imposed reflect the seriousness with which the Central Bank views the wrongful use of client funds, in this case, monies in the client premium account. In deciding the appropriate penalty to impose, the Central Bank has taken the following into account:  The PCM acted deliberately in wrongly debiting the client premium account and its actions caused the Firm to breach Provision 28 of Chapter 5 of the Code.  The duration and frequency of the breaches - the transfers were wrongfully made from the client premium account on several occasions during a 27 month period.  The Firm benefitted financially from the breaches – the wrongful transfers from the client premium account were akin to interest free credit.  The wrongful withdrawals from the client premium account were brought to the Central Bank’s attention by the PCM when the authorised officers arrived on site to the Firm to carry out the inspection.  Since the matter was disclosed, the Firm and the PCM have cooperated with the Central Bank by admitting the breaches, and by remedying the issues the subject matter of the examination.