€3.2 million fine for Alico over securities lending
02 April 2012 Dublin
Image: Shutterstock
The Central Bank of Ireland has fined Alico Life International €3.2 million over its securities lending programme.
During a 2009 inspection, the Central Bank found that €138 million of collateral provided by borrowers was invested by the Alico’s agent in mortgage backed securities, resulting in around €42 million in losses.
Regulators said the firm failed to both account for, and correctly record, certain receipts of the life assurance business.
Alico, owned by US group Met Life, was previously the Irish division of AIG.
During a 2009 inspection, the Central Bank found that €138 million of collateral provided by borrowers was invested by the Alico’s agent in mortgage backed securities, resulting in around €42 million in losses.
Regulators said the firm failed to both account for, and correctly record, certain receipts of the life assurance business.
Alico, owned by US group Met Life, was previously the Irish division of AIG.
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