Central Bank - Enforcement Priorities 2012

Author:Ms Sharon Daly, Helen Noble and Darren Maher
Profession:Matheson Ormsby Prentice

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. These areas have been classified as a priority in light of 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 by the Central Bank. The ten areas which have been earmarked as a 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; and Dissemination of inaccurate / incorrect information in the market (Transparency and Prospectus Directives). However, it should be noted that the Central Bank is not restricted to pursuing enforcement objectives in the above areas only. The Central Bank has highlighted that resources have also been set aside for the purposes of "reactive" enforcement, allowing it to respond to issues identified by it in its general supervisory capacity or to issues brought to its attention through other sources.

The Central Bank has pursued an aggressive enforcement strategy of late and this looks set to continue.

Fitness and Probity Update

Central Bank issues FAQ document

The Central Bank has issued a 'Frequently Asked Questions' document on the Fitness and Probity Regime to address commonly asked questions which have been raised in relation to the operation of the Fitness and Probity Regime.

The FAQ will serves as a useful guide for companies working towards compliance with the new regime. A copy of the FAQ is available HERE.

Increased Fitness and Probity enforcement powers

The Central Bank has 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.

This is a further development of the enforcement powers of the Central Bank. Under the 2012 Regulations the Central Bank can impose prohibition notices on individuals when enforcing the fitness...

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