Conduct of Quinn executives examined

QUINN Group executives are being investigated by the Financial Regulator for evidence of improper conduct in the running of the multinational business.

According to weekend reports financial regulator officials are examining the conduct of individuals as well as systems failings at the troubled group.

If any evidence of wrongdoing emerges the regulator intends to thoroughly pursue possible offenders in order to establish a new culture of compliance among the corporate elite.

The Quinn Group investigation is currently focusing on files which were seized from the business’s Cavan headquarters over the last two weeks.

A senior source at the regulator was quoted in a Sunday newspaper stating that if a new regime of corporate compliance is to be enforced in Ireland “some significant public fights” would need to be undertaken.

Quinn Insurance was handed over to permanent administrators, appointed by the financial regulator last Thursday, by Sean Quinn at the High Court. There are believed to have been several expressions of interest in purchasing the company, which employs over 2,000 in Ireland.

Micheal McAteer and Paul McCann of Grant Thornton and joint administrators of Quinn Insurance will this week contact up to 30 interested parties updating them on the administration process at Quinn. No formal discussion on a possible purchase of the insurance company are expected for several weeks as the administrators prepare an information memorandum.

This week the financial regulator, Michael Elderfield, is expected to allow Quinn Insurance to start writing new policies for Northern Irish and British customers. This facility was halted three weeks ago when the financial regulator initially installed temporary administrators at the company due to concerns over its overall solvency.

Discussion between the financial regulator and the Financial Services Authority (FSA) in Britain about the reopening of the company to British customers are ongoing. The Government is also in discussion with the FSA about facilitating the company’s reopening to the British market with a state-backed mechanism.

Tens of thousands of British policyholders with Quinn Insurance are waiting to find out if their cover will eventually be renewed or whether they will have to go elsewhere when their policy expires.

Quinn UK is one of the biggest insurers of young drivers.