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The Central Bank of Ireland (the "Central
Bank") has published its Enforcement Priorities for
2012 which identifies ten priority areas for enforcement activity
in the year ahead.
The Central Bank has pursued an aggressive enforcement strategy of
late and this looks set to continue. The importance of enforcement
activity within the Central Bank's new regulatory framework has
again been emphasised, with Peter Oakes, Director of Enforcement
noting that:
"Enforcement action combined with the resultant publicity
has a powerful impact promoting compliance and deterring other
industry participants from similar non-compliance.."
Mr Oakes also acknowledged the value of enforcement action in
setting a benchmark for industry participants as regards the
standards and behaviours expected of them by the Central
Bank.
The ten areas which have been earmarked as "priority" for
2012 are as follows:
- Mortgage Arrears
- Retail Intermediaries
- Payment Protection Insurance
- Client Asset Requirements
- Prudential Requirements
- Anti-Money Laundering and Counter Terrorist Financing
- Transaction Reporting
- Systems and Controls
- Timeliness and Accuracy of Information submitted to the Central Bank
- Dissemination of inaccurate / incorrect information in the market (Transparency and Prospectus Directives)
The classification of these areas as priority is due to the fact
that they are currently the areas of greatest concern to the
supervisory divisions within the Central Bank. As a result, robust
enforcement action can be expected where breaches in these areas
are identified. The priority areas are also stated by the Central
Bank to "align" with the themes identified in its
"Programme for Themed Reviews and Inspections for
2012".
It should be noted however that the identification of the above
areas as "priority", does not restrict the Central Bank
from pursuing enforcement objectives in other areas. Indeed, the
information document released by the Central Bank in connection
with its enforcement priorities highlighted that resources have
also been set aside for the purposes of "reactive"
enforcement. Enforcement in this context relates to responding to
issues identified by the Central Bank in its general supervisory
capacity and also to issues which are brought to the Central
Bank's attention through other sources.
Inquiry guidelines
The Central Bank, last Friday, published the responses to
Consultation Paper 57 on inquiry guidelines to be prescribed
pursuant to section 33BD of the Central Bank Act 1942. Consultation
Paper 57 was published in November 2011 and demonstrates the
Central Bank's clear intention to develop its administrative
sanctions procedures to encompass public inquiries. To date, the
administrative sanctions commenced by the Central Bank have ended
in settlements. As the consultation is now closed it is anticipated
that the Central Bank will shortly publish a set of procedures for
formal public inquires.
Last Friday, the Central Bank also enhanced its enforcement powers
in the area of fitness and probity by publishing the Central Bank
Reform Act 2010 (Procedures Governing the Conduct of
Investigations) Regulations 2012. The 2012 Regulations empower the
Central Bank to issue prohibition notices when considering the
fitness and probity of individuals. See the article on fitness and
probity for further details.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
