The UK Financial Reporting Council (FRC) has imposed fines totaling £182,000 on three ex-RSA Insurance Ireland (RSAII) employees in connection with an accounting scandal in 2012.

Along with the fines, the UK accounting watchdog has also put other sanctions on the three ex-employees involved – a former chief financial officer (CFO) and two former actuaries of the company. All the three ex-employees had conceded their misconduct in the financial irregularities.

Rory O’Connor, who served as RSAII CFO, has been imposed a fine of £45,500 which was reduced from £70,000 following mitigation and a settlement discount. O’Connor had also agreed to pay £18,000 as contribution towards the executive counsel’s costs.

Besides, O’Connor has been expelled from the Chartered Institute of Management Accountants (CIMA) for three years.

FRC executive counsel Gareth Rees QC said: “These significant sanctions, including a period of exclusion and substantial fines, reflect the seriousness of the failings by these individuals and will send a strong signal to the accounting and actuarial professions of the importance of upholding high standards of professional conduct.

“These sanctions will also serve to protect the public and contribute to the maintenance of public confidence in the accountancy and actuarial professions.”

The second person named in the RSA financial scandal is Martin Ryan, a former actuary who has agreed to pay a fine of £101,500 as well as £11,000 to cover the executive counsel’s expenses. Besides, Ryan will be ineligible for three years from using the Institute and Faculty of Actuaries (IFoA) issued practicing certificate and barred for three years from working as a signing actuary in Ireland.

The other former actuary held for misconduct is Gerard Bradley who will pay a fine of £45,500 and an additional £3,500 towards the executive counsel’s costs.

FRC’s order of fines and sanctions on the three former officials is related to their involvement in RSAII’s release of materially inaccurate financial statements for the financial years ended 31 December 2010 to 31 December 2012.

Image: RSA Group office in London. Photo: courtesy of Diliff and Wikipedia.