The Australian Prudential Regulation Authority (APRA) has joined with its British counterpart, the Financial Services Authority, in accepting enforceable undertakings from former Cologne Re Dublin (CRD) executive John Byrne over his alleged involvement in a number of sham reinsurance transactions.
In Australia, the terms of the undertakings mean Byrne is prohibited for five years from being or acting as a director or senior manager of a general insurer, non-operating holding company or agent of a foreign general insurer.
In the UK, the terms of the undertakings mean Byrne is prohibited for five years from performing any controlled function in relation to any regulatory activity carried on by any authorised, exempt person or exempt professional firm.
Byrne has agreed to assist APRA with its continuing investigations into the role of other personnel involved in the sham transactions in return for which APRA has agreed to pursue no other action against him.
Byrne, who was a senior employee of CRD, has admitted to being involved in arranging and structuring financial reinsurance contracts on behalf of various subsidiaries of the Gen Re Group that he knew lacked sufficient risk transfer to be accounted for as reinsurance.
