The Central Bank has fined financial service provider LGT Capital Partners (Ireland) €95,000 in relation to the breach of European regulations.
Early last year the authority identified a €132,000 deficit in the firm’s regulatory capital and, following further investigation, found that the deficit had been maintained for more than 50 days.
Investment firms like LGT Capital Partners are required to maintain an adequate level of capital at all times to ensure they can absorb unexpected losses.
In addition to having an inadequate level of capital for an extended period of time, the Central Bank said the company did not have the correct systems in place to monitor and identify the risks posed by an increase in its debtor balance.
Both of these matters were in contravention to the European Communities (Capital Adequacy of Investment Firms) Regulations 2006 and the firm has been ordered to pay a penalty of €95,000 as a result.
In reaching its decision, the Central Bank said it took into account the seriousness of the matter, but also noted the firm’s cooperation and the action it had taken once the problem was highlighted.
The Central Bank said it now considered the matter to be closed.