Central Bank Update

Author:Ms Sharon Daly and Darren Maher

Central Bank issues Strategic Plan 2013- 2015 On 20 November 2012, the Central Bank published its 2013-2015 Strategic Plan (“Strategic Plan”) in which it announced various changes for the future and the consolidation of existing strategies. Some of the more noteworthy provisions of the Strategic Plan for insurance and reinsurance undertakings are:

The Central Bank (Supervision and Enforcement) Bill, 2011 (the “Bill”) will be a key tool in enhancing supervision and the Central Bank stated that it is soon to be revitalised. The Central Bank intends to establish an Implementation Advisory Committee to facilitate consultation of the Bill's implementation;

The PRISM methodology may be extended to all regulated firms;

The Central Bank admitted that the proposed timeline of Solvency II transposition by 30 June 2013 and implementation by 1 January 2014 is unrealistic (as affirmed by the UK FSA);

The Central Bank welcomed the government's proposals to bring it within the Freedom of Information Act and to introduce specific arrangements for whistle blowers;

The Central Bank referred to the proposals for an impact-based approach to the regulatory levy set out in Consultation Paper 61 and stated that it expects the adoption of this new levy calculation process to run from 2014;

To view the full text of the Strategic Plan, please click here. Updated Consumer Protection Code Guidance In December 2012, the Central Bank published a revised Consumer Protection Code Guidance document. To view the full text of the updated Guidance, please click here. Resignation of a pre-approval controlled function holder The Central Bank recently published a notification on its website drawing financial service providers' attention to the requirement under the fitness and probity regime for certain information to be provided to the Central Bank when a person occupying a pre-approval controlled function (PCF) resigns. These requirements are not set out in the Fitness and Probity Regulations, Standards or Guidance published by the Central Bank. Section 12 (Proposer Declaration) of the applicant's individual questionnaire (theIQ) requires theproposer of an applicant to a PCF to:Please confirm the proposing entity will notify the Central Bank of Ireland without delay of the resignation of the proposed applicant, including confirmation of the reason(s) for the resignation. Under the new rules, the following information...

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