Central Bank fines Ava Capital Markets for breaches of rulesThursday 06 March 2014 11.57
The Central Bank has fined Ava Capital Markets a total of €165,000 for beaches of the Markets in Financial Instruments Regulations 2007.
The Central Bank said the company had executed over half a million transactions between February 2010 and December 2011.
In breach of rules, it failed to report details of the deals to the Central Bank by the close of the next working day or reported incorrect details of the transactions.
According to the bank, the company failed to set up adequate policies and procedures to meet the requirements under the regulations.
Ava also failed to make sure that it used effective control and safeguard arrangements for its information processing systems.
The Central Bank also said that Ava Capital Markets failed to ensure that any outsourcing of its transaction reporting functions was not undertaken in such a way as to impair the quality of its internal control or the Central Bank's ability to monitor its compliance.
This is the sixth settlement agreed by the Central Bank with a company for transaction reporting failures since 2010.
"In light of the public statements made and enforcement actions taken by the Central Bank, firms should be aware of the importance of compliance with obligations regarding accurate and timely transaction reporting and should take positive action to ensure these obligations are being met," commented the Central Bank's director of enforcement Derville Rowland.
"The pursuit of enforcement actions in respect of the accuracy of information submitted to the Central Bank and systems and controls failings have been two of the Central Bank’s Enforcement Priorities since 2011 and, for that reason, where breaches occur in these areas, regulated entities and their management should expect vigourous investigation and follow up by the Central Bank," the director added.