The Central Bank has fined wealth management firm BCWM €220,000 after it admitted breaching regulations around how it oversees client assets.
Regulators said the bank had identified failures relating to the adequacy of the firm’s written procedures and internal controls in relation to opening client asset accounts with third parties. The company admitted to breaching the Client Asset Requirements 2007 and two breaches of European MiFID regulations.
The Firm did not adequately designate the title of all client asset accounts in such a way as The Firm also failed to obtain the necessary acknowledgements from banks, brokers and custodians that confirm, amongst other matters, the manner in which client assets will be held.
The bank said the company had failed to adequately designate the title of client asset accounts to make it clear that the accounts held client assets, and didn’t obtain confirmation letters from banks, brokers and custodians that confirmed how client assets would be held.
The breaches occurred between November 2009 and September 2015.
"The protection of financial services consumers is one of the Central Bank's key objectives. The Client Asset Requirements put in place extensive rules to ensure that investment firms protect client assets," said Central Bank's Director of Enforcement and Anti-Money Laundering, Seana Cunningham. "Consumers and investors must have confidence that their assets are safe and afforded all of the required protections when held by investment firms."
