IFSRA Chief Speaks Out On Reinsurance Scandal

by Jason Gorringe, for LawAndTax-News.com, London

06 April 2005

In a prepared speech seen earlier this week by the Irish Independent, the head of the Irish Financial Services Regulatory Authority, Liam O'Reilly condemned the suspect reinsurance transactions undertaken in Dublin by Warren Buffett's General Re Corp, announcing that "transactions knowingly having the effect of obscuring the transfer of risk are unacceptable".

In remarks to be delivered at a conference in the Irish Financial Services Centre today, Mr O'Reilly will also reportedly explain that:

"There is no tolerance in this jurisdiction for such transactions. Ethical behaviour, including transparency in business dealings, are key values expected of boards and senior management of all financial entities operating in Ireland."

"They must in turn instil these values throughout their organisations. We pride ourselves in matching best international practice in all aspects of financial regulation. Any regulated entities, whether in international activities or domestic activities, are required to comply with best international practice."

The IFSRA chief is additionally set to reveal that the Authority has played a key role in the drafting of a new European regulatory regime for reinsurance.

"A mainstay of these regulations is full transparency of all reinsurance transactions. This framework avoids some of the shortcomings associated with the alleged finite reinsurance transactions carried out in the past," he will conclude, according to the Irish Independent.

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