The Central Bank has fined Squared Financial Services Limited €100,000 for breaching regulations. Authorities said the financial services provider had contravened Capital Adequacy and Markets in Financial Instruments regulations between 2009 and 2012.

The Central Bank said the firm had large exposures to two entities in excess of the permitted limits on dates between April 30th, 2009 and May 31st, 2012, and failed to make sure that it had in place administrative and accounting procedures and internal control mechanisms to ensure compliance with the permitted limits and the reporting obligations.

Regulators also said the fine reflected the length of time the contraventions persisted, but it has also taken into account the fact that the firm notified the Central Bank of the contraventions, and had enhanced its procedures.

"The large exposure requirements limit the level of exposure which a firm has to an individual or entity or to a group of connected individuals or entities so that if that individual or entity was in difficulty this would not have a significant impact on the firm," director of enforcement Derville Rowland said.

“The failure by regulated financial services providers to ensure that they comply with large exposure limits and the reporting obligations at all times is viewed as a serious matter by the Central Bank given the potential risks to a firm’s stability in the event of an individual or an entity falling into financial difficulty.”