Philip Smith, who served as CEO and executive director of RSA Insurance Ireland DAC (RSAII) from 2009 to 2013, was this month reprimanded and disqualified for 13 year from being a person concerned in the management of a regulated financial service provider.

The penalties relate to his participation in a breach by the firm of Article 13(1)(a) of the European Communities (Non-Life Insurance) Framework Regulations 1994, S.I. No. 359 of 1994, which requires insurance undertakings to maintain adequate technical reserves in respect of all underwriting liabilities.

RSAII was previously fined in relation to the breach in 2018, having admitted in September 2013 that there was a significant shortfall in its technical reserves resulting from the under-reserving of 17 large loss claims.

Mr Smith avoided a €120,000 penalty in addition to his disqualification due to statutory limits on the Central Bank’s sanctioning powers, which include that it is not allowed to impose a fine that would be likely to make a person bankrupt.

Colm Kincaid, deputy governor, said: “The actions of directors and senior executives shape the conduct and operating culture of the firms they lead — none more so than the CEO.

“For consumers of financial products, including policyholders, to have trust in financial services, they need to be confident that their best interests will be secured.

“These consumers rely on directors and senior executives to manage their businesses in a way that not only adheres to the rules but builds an effective organisational culture based on standards such as professionalism, integrity and accountability to deliver fair outcomes that have the interests of consumers at heart.”

He added: “Since the period to which today’s announcement relates, Ireland has enhanced the statutory framework for the accountability of senior individuals in financial services firms through the Central Bank (Individual Accountability Framework) Act 2023.

“These enhancements support the ultimate goals of better outcomes for consumers and a more sustainable financial system by driving higher standards of behaviour for individuals in financial services firms.”