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 of 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.
