Former RSA Ireland CFO admits misconduct, agrees to fines and sanctions

The former chief financial officer Rory O’Connor and two former actuaries of RSA Insurance Ireland have admitted misconduct and agreed to fines and other sanctions following the conclusion of the Financial Reporting Council’s (FRC) investigation into financial irregularities at the company in respect of the year ended 31 December 2012 and relevant prior periods.

RSA had to inject around €400 million of cash between 2013 and 2015 into its Irish subsidiary after a hole in its balance sheet was detected as too little money had been set aside to cover large claims.

O’Connor admitted to breaching the ‘Fundamental Principles of Integrity and Objectivity’ when he approved materially inaccurate financial statements of RSA Ireland for the financial years ended 31 December 2010 to 31 December 2012.

Subsequently he agreed to a 3-year exclusion from the Chartered Institute of Management Accountants; a fine of £50,000 reduced to £35,000 after mitigation and a settlement discount; and a sum of £18,000 to be paid by him as a contribution to the Executive Counsel’s costs.

Martin Ryan, former chief actuary of RSA Ireland agreed to a settlement which includes that he shall not for 3 years act as a signing actuary in Ireland, a fine of £145,000 reduced to £101,500 after mitigation and a settlement discount; and a sum of £11,000 to be paid by Ryan as a contribution to the Executive Counsel’s costs.

Gerard Bradley, a former actuary of RSA Ireland admitted that he breached the core principle of compliance by his failure to whistle-blow and/or provide sufficient challenge regarding the operation of an inappropriate claims reserving practice within RSA Ireland.

Bradley agreed to a £70,000 fine reduced to £45,500 after mitigation and a settlement discount, and a sum of £3,500 to be paid by Mr Bradley as a contribution to the Executive Counsel’s costs.

Gareth Rees executive counsel to the FRC, said: "These significant sanctions, including a period of exclusion and substantial fines, reflect the seriousness of the failings by these individuals and will send a strong signal to the accounting and actuarial professions of the importance of upholding high standards of professional conduct. These sanctions will also serve to protect the public and contribute to the maintenance of public confidence in the accountancy and actuarial professions."

Today’s top stories

Investment gains mask poor underlying performance at PartnerRe

Potential €400m surplus capital prompts SCOR to mull share buyback scheme

Profits dip at SCOR but life unit drives solid growth

AXIS poaches Beazley exec to lead London MGA growth

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.