The Financial Regulator has fined an insurance broker in relation to selling a customer a bond in financial company ISTC, which suffered a catastrophic fall in the value of its shares.
The customer was refunded by the insurance broker, Jim Mannion & Co, Strokestown, Co Roscommon.
ISTC, founded by former Anglo Irish Bank chief operations officer Tiernan O'Mahoney, suffered a collapse in its equity in 2008 as part of the financial crisis. Investors in the company lost a total of €880m. ISTC was later taken over by UK stockbroker Collins Stewart for €5m.
Today the Financial Regulator fined Jim Mannion & Co for the 'sale of an unsuitable investment product, the Friends First ISTC Creative Bond'.
The regulator said Jim Mannion & Co 'failed to properly inform one customer about the investment risks and guarantee limitations associated with this bond'. It was required to pay a fine of €5,000.
The Financial Regulator said the issue came up during an inspection of the sale of Friends First ISTC Bonds.
