New Powers Acquired By The Central Bank

Author:Ms Bríd Munnelly, Carina Lawlor and Michael Byrne

Among the headline changes introduced by the Central Bank (Supervision and Enforcement) Act 2013 (the "2013 Act") is the increase in the maximum fines which can be imposed by the Central Bank of Ireland in the administrative sanctions procedure. For corporates, maximum fines have increased from5 million to10 million or 10% of the previous year's turnover. For individuals the maximum fine has increased from500,000 to1 million. Significantly, the 2013 Act now empowers the CBI to require regulated entities to produce a 'skilled person' report to be prepared by a lawyer, accountant or other expert, whose appointment is subject to CBI approval. While the regulated entity must bear the costs of the preparation of the report, the CBI can prescribe the issues that it must address. The CBI's new power to compel the production of a skilled person report is similar to the power available to the Prudential Regulation Authority and the Financial Conduct Authority in the UK under section 166 of the Financial Services and...

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