The Central Bank of Ireland has started preliminary hearings into the alleged insurance law violations committed by former Quinn Insurance Limited (QIL) executives Liam McCaffrey and Kevin Lunny.
According to a
Sunday Business Post report, the financial regulator is investigating QIL to establish whether former members of its management were involved in “suspected prescribed contravention” of industry regulations.
The report said adverse inquiry findings can lead to sanctions and fines amounting to €500,000. The hearings are conducted in private.
The QIL was placed in administration by the Central Bank in 2010 over concerns about its revenue shortfall of more than €800 million.
The Central Bank later set up an investigation following the insurance firm’s collapse.
Lunny, a former company director and McCaffrey, the former Quinn Group chief executive, launched a legal challenge in March in a bid to stop the regulator’s inquiry.
They claimed that the probe is unfair, unconstitutional and a usurpation of the role of the courts, the
Sunday Business Post reported.
The High Court was supposed to hear on July 26 a motion to add new grounds to the QIL executives claim, the report said.
However, the lawyer of the insurance executives told Justice Paul McDermott instead that the matter had been mentioned before the Central Bank inquiry the previous day.
McDermott was informed that the matter would be dealt with in another hearing on September 30.
Related stories:
Supreme Court tackles case of ‘hopelessly’ broke Enterprise Insurance
Irish Central Bank hands reinsurer €275,000 fine
