Former partner of financial brokerage banned over 'misappropriation of client funds'
The former partner of a Galway financial brokerage has been banned indefinitely by the Central Bank from having any function in a regulated firm over what was described as the misappropriation of client funds.
Paul Tarpey, who was the partner in Costello & Tarpey Financial Services, failed to act honestly, ethically and with integrity, according to the Central Bank.
The financial services firm has since been dissolved.
He has been prohibited indefinitely from carrying out any controlled functions, including pre-approval controlled functions, in any regulated financial service provider.
“The prohibition arises from a Central Bank investigation into the misappropriation of client funds by Mr Tarpey during his time at Costello & Tarpey Financial Services,” the regulator said in a statement.
An indefinite ban is the most serious outcome when the Central Bank conducts an investigation under its fitness and probity regime.
Director of enforcement and anti-money laundering at the Central Bank Seana Cunningham, said referred to what she called a statement of undisputed facts, adding that this document “clearly demonstrates Mr Tarpey’s failure to act honestly, ethically and with integrity”.
Ms Cunningham added: “This case should serve as a reminder that the Central Bank will prohibit people who act dishonestly.
“This outcome is also notable, as it is the first time that we have exercised our discretion to publish full reasons for a prohibition.”
The Central Bank prohibition arose from whistleblower tip-off to the regulator in 2016.
When the regulators began probing the financial firm, Mr Tarpey’s solicitors wrote to the Central Bank admitting he had misappropriated funds, details on the case reveal.
It is understood the Gardaí are not currently investigating Mr Tarpey.
It is the sixth prohibition notice issued by the Central Bank.