Public statement relating to Settlement Agreement between the Financial Regulator and DEPFA ACS BANK

Date16 December 2009
PO BOX 9138 T +353 1 224 4000
College Green F +353 1 224 6022
Dublin 2
Settlement Agreement
between the Financial Regulator and DEPFA ACS BANK
The Financial Regulator has entered into a Settlement Agreement with effect from 16
December 2009 with DEPFA ACS BANK in relation to breaches of a regulatory
requirement under the Asset Covered Securities Act 2001 (as amended) (“the Act”).
The Financial Regulator has reasonable cause to suspect that breaches of a regulatory
requirement occurred whereby DEPFA ACS BANK failed on a number of occasions to
obtain the approval of its Cover-Assets Monitor (“the CAM”) or the Financial Regulator
prior to making or amending an entry in its register of public credit covered securities
business, such approval being required pursuant to subsection 53(5) of th e Act.
The breaches were notified in the first instance to the Financial Regulator by DEPFA ACS
BANK.
In determining the appropriate sanction, the Financial Regulator took into account the
following:
The CAM has confirmed that at all times the cover assets pool remained in
compliance with all other requirements of the Act, including over collaterali sation
requirements on both a regulatory and contractual basis
No investors suffered a financial loss; and
DEPFA ACS BANK has since introduced new procedures an d controls (including
those proposed by an external consultant) and new management and reporting
structures to prevent future incidences of this nature.
The Financial Regulator has reprimanded DEPFA ACS BANK and required it to pay a
monetary penalty in the sum of €250,000.

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