RSA facing fine over irregularities in Ireland - report

RSA is likely to be fined up to €5m (£3.6m) for financial irregularities in 2013, according to a report in the Irish Times cited by sister title Post.

The paper reports that the Central Bank in Ireland may reduce this figure to €3.5m if it decides that the insurer has cooperated fully with the investigation and has taken steps to remedy the situation.

The investigation into financial irregularities relates to events in 2013 that resulted in RSA lowering its operating by £70m and suspending three members of its senior management in Ireland.

The insurer’s CEO former CEO for Ireland, Philip Smith, claimed he was made a “fall guy” for the problems and announced his intention to sue the firm for constructive dismissal.

That hearing started yesterday, according to the Irish Times, which reports that Smith will argue that the company knew of the irregularities in Ireland.

According to the paper, the hearing will last five days instead of the usual two, over which time Smith will face cross-examination from RSA.