On 2 August 2013, the Central Bank of Ireland (the "Central Bank") issued a consultation paper entitled Client Asset Regulations and Guidance (the "Consultation Paper").
The proposals outlined in the Consultation Paper have been put forward for consideration in order to streamline the client asset regime and make it more comprehensive and readily accessible. It is envisaged that the existing Client Asset Regulations ("CAR") (issued by the Central Bank in 2007) be revised.
The Consultation Paper notes that the protection of client assets is a regulatory priority for the Central Bank and that the proposals are aimed at minimising the risk of loss and/or misuse of client assets. The Consultation Paper is aimed at the following parties concerned with, or subject to, the current CAR:
Firms who hold client assets; Clients and potential clients whose assets are held by firms; Auditors; Business outsourcing firms providing back office services; Third parties; Insolvency practitioners; and Independent experts. In particular, the Central Bank seeks industry views on...