Public statement relating to Settlement Agreement between the Financial Regulator and McHugh O'Leary Insurance Brokers Ltd t/a McHugh O'Leary Insurances

• Date: 18 December 2009

1

PO BOX 9138 T+353 1 224 4000

College Green F+353 1 224 6022

Dublin 2

Settlement Agreement

between the Financial Regulator and McHugh O’Leary Insurance

Brokers Ltd t/a McHugh O’Leary Insurances

The Financial Regulator has entered into a Settlement Agreement with effect from

18 December 2009 with McHugh O’Leary Insurance Brokers Ltd t/a McHugh

O’Leary Insurances (the ‘firm’) of 15 Dublin Street, Carlow, Co. Carlow, a

regulated financial service provider, in relation to breaches of regulatory

requirements.

The Financial Regulator has reasonable cause to suspect that breaches of

regulatory requirements occurred in relation to the failure of the firm to comply

with certain provisions of the Consumer Protection Code (the Code) and the

Handbook for Restricted Activity Investment Product Intermediaries (the

Handbook). These related in particular to the sale of commercial lines insurance.

The Financial Regulator has reprimanded the firm and required it to pay a fine of

€18,000.

These suspected breaches were discovered during the course of the Financial

Regulator’s Themed Inspections into ‘Charges and Premium Rebates in the

Insurance Intermediary Sector’ and relate, inter alia, to a failure by the firm to

act in the best interests of its customers during the period 1 August 2004 to 30

June 2007 by applying (a) broker fees and (b) administration charges in respect

of rebates which were in excess of the maximum fees advised in the firm’s terms

of business document resulting in certain customers being overcharged.