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

Date24 March 2022
Central Bank of Ireland
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

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT