The Central Bank has reprimanded and fined Keystone Insurance a total of €41,385 for overcharging customers and providing "unclear" communication on fees to customers.
The Central Bank said it found six breaches of the Consumer Protection Code 2012 at Keystone Insurance from April 2012 to December 2017.
Keystone, a retail intermediary that operates in the commercial insurance market, has admitted to all six breaches of the Code.
The regulator's investigation found that Keystone failed to comply with the code in respect of having adequate systems and controls to allow it to correctly apply fees in accordance with its terms of business.
The company also failed to communicate clearly on fees to its customers in order for them to make informed financial decisions.
Over a five year period, 62 customers were identified by the Central Bank investigation as having been overcharged a total of €9,964. These customers have been fully reimbursed by Keystone.
190 customers also received unclear communications, including the failure to bring fees to the attention of the customers.
This resulted in the customers not being fully aware of the fees being charged, the Central Bank said.
The Central Bank also said the breaches were not self-reported by Keystone, and would have continued if it had not been for the bank's identification of them as part of an inspection in June 2017.
During the course of the investigation, the Central Bank said that Keystone provided it with incomplete and unclear responses to requests for information which led to delays in the investigation.
It said it considered this to be an aggravating factor in the case.
The Central Bank's Director of Enforcement and Anti-Money Laundering, Seána Cunningham, said that the purchase of everyday financial products by consumers can be a complex and daunting process and many consumers rely on professionals, in this case an insurance intermediary, to assist them.
"Insurance intermediaries are required to recommend the most suitable product(s) to meet their customers' needs and to always act in their best interests," Ms Cunningham said.
"The Central Bank expects that all regulated firms should have adequate processes, systems and controls in place to ensure compliance with the Code, ensure staff are trained on the Code's provisions, regularly check that they are in compliance with the Code and ensure that any failures that may occur are identified and rectified early," she stated.
"In this case, as a result of not having the adequate processes, systems and controls, Keystone overcharged 62 customers and 190 of their customers were sent unclear communications on what fees they were being charged," she added.
Ms Cunningham also said that the Central Bank expects all firms to engage proactively with enforcement investigations and provide accurate and comprehensive information in response to Central Bank requests.
"This is the minimum level of cooperation that the Central Bank expects during the course of an investigation. Failure to do so, as in this case, will be reflected in the level of fine imposed," she added.
This is the Central Bank's 140th settlement since 2006 under its Administrative Sanctions Procedure, bringing the total fines imposed by the Central Bank to over €124m.
The settlement also marks the 33rd outcome in respect of the bank's consumer protection focused codes of conduct, including the 2006 and 2012 Consumer Protection Codes.
