Objectives
The objectives of the Financial Regulator’s supervision process for Credit Institutions are:
- to foster a stable banking system and
- to provide a degree of protection to depositors with individual credit institutions
Prudential Supervision
Prudential supervision involves monitoring the business of each credit institution including their compliance with our statutory and non-statutory requirements. Details of these requirements are set out in the Regulatory Requirements/Guidance section.
It includes analysis of financial data submitted by credit institutions including prudential returns (weekly, monthly and annual) and annual reports.
Review meetings and on-site inspections are conducted regularly with credit institutions as part of this process.
Fitness & Proper Requirements
Directors and Senior Managers of Credit Institutions authorised by the Financial Regulator are required to meet our fitness and probity standards which require them to have the necessary qualifications, skills and experience to perform the duties of their position and to be honest, fair and ethical.
Before a new Director or Senior Manager is appointed they must complete an Individual Questionnaire which should be endorsed by the proposing Credit Institution before submission for approval to the Financial Regulator.
Individual Questionnaire (IQ)
Individual Questionnaire.doc
View our Fit and Proper Requirements for guidelines on approval of persons.
Cross Border Supervision
When the Financial Regulator authorises a credit institution it is responsible, as home state regulator, for regulating their activities in other EU Member States.
The Financial Regulator is not responsible for the prudential supervision of Irish branches of credit institutions authorised in other EU member states and operating under a passporting arrangement in Ireland except, in co-operation with the home state regulator, for their compliance with liquidity criteria.
As host state regulator the Financial Regulator is responsible for consumer protection issues and compliance with anti-money laundering for the services provided by these entities in Ireland. .
Consumer Protection Requirements
General
The supervision of conduct of business for banks is concerned mainly with the sales process, provision of information to consumers and complaints handling. This aspect of supervision of banks is carried out by the Consumer Protection Codes Department.
Consumer Protection Code
The Consumer Protection Code was fully implemented in July 2007. It is a set of general principles and detailed requirements covering many aspects of a financial services provider’s relationship with a consumer such as:
- Providing financial products and services to consumers;
- Giving information and advice to consumers;
- Advertising financial products and services; and
- Handling complaints.
Download the Consumer Protection Code
Minimum Competency Requirements
The Minimum Competency Requirements are designed to establish minimum standards across all financial services providers from which consumers seek advice on, or seek to purchase, retail financial products. The Requirements apply to the staff of banks who:
- Provide advice to consumers on retail financial products;
- Arrange or offer to arrange retail financial products for consumers; or
- Undertake certain specified activities.
Download the Minimum Competency Requirements.
Conduct of Business Supervisory Process
We monitor compliance with the Consumer Protection Code and other conduct of business requirements by way of:
- Advertising monitoring
- Themed inspections
- General Inspections
- Mystery shopping
Approval of Charges
Under the Consumer Credit Act, 1995 (as amended), banks must make a submission to the Financial Regulator if they wish to introduce or increase, charges in respect of a service such as:
- Making and receiving payments;
- Providing Foreign Exchange facilities;
- Providing and granting credit; and
- Maintaining and administrating transaction accounts.
The Financial Regulator reviews these submissions and either approves the charge in full, accepts the proposal but at lower levels requested by the entity or rejects the proposal. The Financial Regulator asseses each submission based on the following criteria which are set down in legislation:
- the promotion of fair competition;
- the impact new charges or increases in existing charges will have on customers;
- how the bank justifies its proposed new charges or increase in existing charges; and
- a firm passing any costs on to its customers.
Supervisory Guidance
The Financial Regulator implements EU Regulations and issues guidelines to enhance our supervisory oversight.
Through our participation in the Committee of European Banking Supervisors (CEBS) we have adopted the CEBS guidelines for implementing a common European framework for supervisory disclosures in order to allow meaningful comparisons of supervisory rules and practices across Europe.
Information is available under Supervisory Disclosures Requirements.