The Central Bank has fined BVP Investments Limited €6,000 and reprimanded it for breaching a condition imposed on its authorisation by holding client assets.
The breach, which occurred at various times over the course of almost 12 years from November 2007 and August 2019, has been admitted by the company.
The regulator stressed, however, that it found no evidence of loss or misappropriation of client assets.
The Central Bank said it could have imposed a financial penalty of €80,000 on the company but did not so because of its financial position and BVP's obligation to meet its capital adequacy requirements.
BVP's authorisation to operate here contains an explicit condition stating that it is not permitted to hold client money or investment instruments.
The Central Bank said that immediately after obtaining its authorisation in 2007, and with full knowledge of the condition, BVP began holding and processing client funds through its corporate bank accounts.
It said this resulted in significant amounts of client funds being co-mingled with the firm's own funds in its corporate bank accounts.
"In addition, on a number of occasions, BVP held client financial instruments, also in breach of the condition of its authorisation," the Central Bank said.
"The aggregate amount of client funds held by the firm over the duration of the breach was almost €16m, with the highest amount at any one time being over €1.5m," it added.
"This breach should not have occurred and we regret that it did," a spokesman for BVP said.
"We welcome the fact that this matter is now closed and the confirmation that there is no evidence of misappropriation or loss of client assets. We have taken steps to prevent a recurrence," the company added.
Seána Cunningham, the Central Bank's Director of Enforcement and Anti-Money Laundering, said the bank requires regulated financial service providers to undertake only those activities specified in their authorisation.
Ms Cunningham said the Central Bank considers it unacceptable where firms breach the conditions, or any relevant regulatory requirements, which underpin that authorisation.
"While the Central Bank found no evidence of loss or misappropriation of client assets, BVP's actions exposed those client assets to a risk of loss, misuse or delay in the return of assets to clients in circumstances where they were not readily identifiable and appropriately ring-fenced," she said.
Ms Cunningham stressed with compliance with conditions of authorisation is not optional.
"The Central Bank requires all regulated financial service providers to ensure that they are, at all times, in compliance with their authorisation in the conduct of their business. Failure to do so will result in robust action by the Central Bank, including investigation and enforcement action," she added.
The Central Bank said its investigation into the company in respect of this matter is now closed.
