LONDON Feb 22 The former chief financial
officer of UK insurer RSA's Irish business has been
fined 35,000 pounds ($43,690) and banned for three years by
Britain's accounting watchdog over a book-keeping scandal.
The Financial Reporting Council (FRC) said on Wednesday it
had fined Rory O'Connor and banned him for three years from the
accounting profession for approving "materially inaccurate"
O'Connor also agreed to pay 18,000 pounds towards the
watchdog's legal costs.
RSA said in 2014 that a review of its businesses found that
the accounting irregularities were confined to its Irish
business, where there had been "inappropriate collaboration"
among a small number of executives in Ireland.
The insurer was forced to inject 200 million pounds into its
Irish business at the time and RSA Insurance Ireland said on
Wednesday it has strengthened its control framework since 2013.
The FRC also made its first sanctions of actuaries, a move
its executive counsel Gareth Rees said would send a strong
signal to the accounting and actuarial professions of the
importance of upholding high standards of professional conduct.
"They demonstrate the importance of compliance with the core
principles of the Actuaries Code, including the obligation to
speak up about, and challenge, improper conduct," Rees said.
Martin Ryan, former chief actuary for RSA in Ireland,
admitted that his conduct fell significantly short of
professional standards, the FRC said.
Ryan was fined 101,500 pounds and banned from the profession
for three years. He will also contribute 11,000 pounds to the
FRC's legal costs.
And Gerard Bradley, a former actuary at RSA in Ireland, also
admitted his conduct fell short of professional standards and
was fined 45,500 pounds, and will pay 3,500 pounds in costs.
Bradley failed to blow the whistle or challenge the
inappropriate claims reserving, the FRC said.
($1 = 0.8011 pounds)
(Additional reporting by Carolyn Cohn; Editing by Alexander