Report will throw light on Faldor mystery

TODAY’S report on AIB from the Irish Financial Services Regulatory Authority (IFSRA) will cast a spotlight on the mystery of Faldor, a British Virgin Islands-registered investment company whose activities benefited five former top executives at the bank.

AIB said Faldor, whose existence was made public in May, broke tax laws and had “inappropriate dealings” with its investment management subsidiary, AIB Investment Managers (AIBIM), between 1989 and 1996.

The bank said it would pay out €1.1 million in compensation to customers who lost out as a result of Faldor’s dealings and to settle outstanding tax liabilities. It gave little detail on the exact nature of what Faldor was up to, but said it took advantage of favourable dealing practices that allowed the executives to profit at the expense of other AIBIM clients.