Dan O'Connor-chaired IPF falls as Poland rule change hits profits
Shares in London-listed International Personal Finance (IPF), the home credit and digital loan business chaired by former AIB executive chairman Dan O'Connor, remain at a 30-month low after crashing from 471p to 350p recently.
The company put out a statement saying that a proposed change to personal finance law could hit its profits in Poland.
IPF said it believes the proposal would cap all-non-interest costs, like fees associated with a loan.
"IPF is reviewing the draft legislation to assess whether its product structure will be affected by the proposed cap," the company's statement said.
"In addition, we are proactively developing an alternative product structure to mitigate any adverse financial impact to the greatest extent possible.
"Dependent on legal interpretation of the final version, however, there can be no assurance that the legislation, if introduced in its present form, would not have some adverse financial impact on IPF".
IPF had come up with a new product to take account of a previous draft of the proposal, which would have only capped mandatory non-interest costs.
But after the intervention of a Polish MP late in the process the plan was toughened. It is now due to go before the Upper House of the Polish parliament.
O'Connor, who was appointed AIB executive chairman at the end of 2009 when then chief executive Eugene Sheehy announced he was retiring, joined IPF as a non-executive director in January and became chairman in April.
He bought almost £200,000 of IPF shares in May. That investment is now worth £162,000.
O'Connor is also a director of Glanbia, and was formerly on the board of CRH. He's a former CEO of GE Consumer Finance Europe. Also on the IPF board is Eircom CEO Richard Moat. The company's CEO Gerard Ryan is a fellow of the Institute of Chartered Accountants in Ireland.
Sunday Indo Business