The Central Bank yesterday closed down a Dublin-based investment intermediary amid an investigation into its relationships with a number of financial institutions.
Noel Fitzpatrick & Associates, which traded in Stillorgan, sought a voluntary revocation of its licence after the Central Bank indicated it would seek permission from the High Court to close the firm down.
The Garda is involved in the investigation, which is believed to have commenced only in recent days. It is thought the firm's links to four financial institutions are under scrutiny. They are: Friends First, Canada Life, Caledonian and Anglo Irish Bank.
The Central Bank was acting on information received when it suspended the firm's licence last Thursday, it is understood. The Bank's swift closure of the company is seen as an indication that it believes serious matters are being investigated.
A bank spokesman said: "Our investigation into the firm is currnetly focused on its business relationships with product producers. The investigation is ongoing and we currently are not aware of matters affecting clients directly."
Both the Central Bank spokesman and the principal in the firm, Mr Noel Thomas Fitzpatrick, would not discuss the issues that led to the inquiry. Mr Fitzpatrick said he had received legal advice not to comment but said there was no question surrounding clients' funds.
Mr Fitzpatrick (38) lives in south Dublin. Information about the business is scant because he operated as a sole trader. As such there are no details about the operation in the Companies Office.
Mr Fitzpatrick was authorised by the Central Bank to advise on products sold by 10 institutions. They are: Caledonian Life; Canada Life; CGU Life; Eagle Star; Friends First; Hibernian Life; New Ireland; Scottish Mutual International; Scottish Provident and Standard Life.
While thousands of intermediaries have been authorised by the Central Bank in recent months under the Investment Intermediaries Act, it is believed that the investigation did not arise as a result of the authorisation process.
Elements of the investigation linked to Friends First are separate to other strands of the inquiry, it is believed.
It is understood that the Department of Enterprise, Trade and Employment, which regulates the life business, has been informed about the inquiry.
Established in March 2000, the firm is thought to have had in the region of 50 clients. They have been advised to contact the issuers of their investment products or the Central Bank at 1890-200-469.
Mr Fitzpatrick said he was previously involved in an entity known as Trafalgar Financial Group, which is no longer trading.
He is a co-director of Terrintech (Ireland) Ltd, which is described in the Companies Office as a software consultancy and supply firm. Registered last March, the company has not yet commenced trading.
The firm is the second to be closed by the Central Bank in recent weeks. In July, the intermediary National Deposit Brokers was closed down after Central Bank officials uncovered "serious regulatory issues" in an investigation. It is thought that that inquiry has not ended.
