Central Bank of Ireland imposes its first ever fine on an investment fund
The ICAV has admitted it failed to report 200,640 derivative trades entered into between January 2018 and May 2020 by one of its sub-funds to a trade repository.
In a statement on 30 November, the Irish regulator said the reprimand and fine related to the European Union (European Markets Infrastructure) Regulations 2014, as amended (the EMIR Regulations), for breach of its reporting obligation under Article 9(1) of the European Markets Infrastructure Regulation (EMIR).
EMIR requires details of any derivative contracts to be reported to a registered trade repository no later than the working day following the conclusion of the contract.
Ex-Barclays CEO James Staley fined and banned by FCA over ties to Jeffrey Epstein
The ICAV has admitted it failed to report 200,640 derivative trades entered into between January 2018 and May 2020 by one of its sub-funds to a trade repository.
The central bank determined the appropriate fine to be €275,000, which was reduced by 30% to €192,500 as allowed for by the settlement discount scheme provided for in the EMIR Regulations Settlement Scheme. This is the first monetary penalty imposed on an investment fund by the Irish central bank to date.
Seána Cunningham, the central bank's director of enforcement and anti-money laundering, said: «This case highlights the importance of timely and accurate data reporting. The reporting obligations under EMIR and other sectoral legislation increase transparency and enable the central bank to obtain a complete picture of each firm's operations, to fully understand the risks facing firms operating in securities markets, and thereby to address systemic risk. Incomplete or inaccurate data actively hinders market monitoring processes and activities.
»Firm
Read more on investmentweek.co.uk
