Departures of fund managers are rarely good news for investment firms, unless there is under-performance. But the sudden departure of a high-profile and well-regarded fund manager without much explanation can be very damaging.

The resignation of Pramit Ghose from his posts of managing director and chief investment officer of Hibernian Investment Managers shocked the market.

Hibernian's statement announcing an internal investigation into an alleged breach of compliance was separated from the resignation announcement. In an information vacuum, there was inevitable speculation as to what had happened at the investment company, who was involved and how it was handled. With lawyers involved and a Central Bank investigation about to begin, all involved refused to comment.

On the plus side for Hibernian, the problem transaction was identified internally and reported to the Central Bank and the company said no client "has been or will be at a loss" as a result.

But what the company did not say fuelled speculation. What was the alleged breach? Was it deliberate or inadvertent? How serious was it? Did Hibernian have to make good losses to protect clients? Were existing procedures not adequate to prevent it occurring?

Following the merger with Norwich Union, Hibernian is the fifth-largest fund manager in the Irish market and has big growth ambitions. It is a lucrative market but one where confidence in the fund management team is crucial to getting new business and retaining existing clients - a market uncomfortable with upheavals and unexplained or sudden moves.

With a Central Bank investigation and an internal Hibernian investigation under way, only time will tell the extent of the impact of the events of recent weeks on Hibernian.