Public statement relating to Enforcement Action against BNY Mellon Fund Services (Ireland) DAC

• Date: 24 March 2022

1

ENFORCEMENT ACTION

Central Bank of Ireland

and

BNY Mellon Fund Services (Ireland) DAC

BNY Mellon Fund Services (Ireland) DAC fined €10,780,000 and reprimanded by the

Central Bank of Ireland for regulatory breaches relating to outsourcing

On 22 March 2022, the Central Bank of Ireland (the Central Bank) reprimanded and fined BNY

Mellon Fund Services (Ireland) DAC (BNY DAC or the Firm) €10,780,000 pursuant to its

Administrative Sanctions Procedure (the ASP) for 16 regulatory breaches relating to the

outsourcing of fund administration activities.

The 16 breaches arose because of BNY DAC’s failure: to have in place an adequate outsourcing

governance framework; to comply with its regulatory obligations in respect of outsourcing; and

to engage openly and transparently with the Central Bank once breaches of its regulatory

obligations were identified. The duration of the breaches ranged from 26 days to 6 years,

spanning the period from July 2013 to December 2019.

Weaknesses within BNY DAC’s outsourcing framework were first identified by the Central

Bank, and despite protracted intrusive supervisory engagement, BNY DAC failed to fully

remediate all of the issues to the Central Bank’s satisfaction. This led to further breaches and

extended the duration of the breaches. Following the commencement of the investigation into

BNY DAC’s outsourcing failings, it committed additional breaches by providing inaccurate and

misleading information to the Central Bank and by failing to report breaches as soon as it

became aware of them.

The Central Bank’s investigation identified serious systemic breaches across BNY DAC’s

outsourcing framework. These failings undermined BNY DAC’s ability to effectively identify and

manage the risks associated with its outsourcing arrangements; undermined the Central Bank’s