Directors of insurance brokerage disqualified

TWO principal directors of Cork-based insurance brokerage, Frank J Murphy Insurance Brokers Ltd, have been disqualified by the Financial Regulator.

The decision was reached after “themed inspections” of the company by the regulator found that the firm was in breach of a number of regulatory requirements.

These breaches included a failure to lodge cash premiums, received by clients, to the firm’s client premium account; the improper handling and withdrawal of client premiums; the improper retention of client premium rebates, failure to keep proper books and records and a failure to notify the regulator of its breaches.

A statement from the regulator, issued yesterday, said that it had entered into a settlement agreement with the Cork firm — with offices in Bishopstown and Ballycurreen — “in relation to breaches of regulatory requirements”.

As per the details of the agreement, Frank Murphy has been disqualified as a director for five years, while his wife Terri Murphy has been disqualified for one year.

“The Financial Regulator has reasonable cause to suspect that breaches of regulatory requirements occurred in relation to (the company) while Mr Frank Murphy and Mrs Terri Murphy were directors,” the regulator’s statement continued.

Both periods of disqualification came into immediate effect as of yesterday.

The Financial Regulator added that the insurance company agreed to write to all clients who had been overcharged or had rebates wrongly withheld, notifying them of their new position.

The company is understood to have now refunded all outstanding monies to clients along with the appropriate interest.

The regulator also confirmed yesterday that “all parties have co-operated with the examination, including complying with requirements issued by the Regulator to the firm since October 2006 and the matter is now closed.”