The Central Bank and Financial Services Authority of Ireland Act, 2004 provides powers for the Central Bank of Ireland to impose sanctions for prescribed contraventions of legislation or regulatory rules.
Contravention, examination and possible inquiry
If the Central Bank of Ireland has reasonable cause to suspect that a regulated financial service provider and/or person concerned in the management of a regulated financial service provider has committed or is committing a 'prescribed contravention', it may conduct an examination into the issue.
Throughout the examination stage, the Central Bank of Ireland will obtain information about the suspected prescribed contravention.
Once the examination has concluded a decision will then be taken about whether to establish an inquiry.
An inquiry may be held where there are reasonable grounds to suspect that there is or has been a prescribed contravention. The inquiry shall decide if the prescribed contravention has occurred and determine the appropriate sanctions.
Settlement and resolution
The legislation provides that, at any time up to the conclusion of an inquiry, the Central Bank of Ireland may enter into a binding settlement agreement with a regulated financial service provider and/or a person concerned in its management to resolve the matter.
Where an entity/individual enters into such an agreement early in the pursuit of a sanctions case, the terms of the settlement will reflect the savings in time, resources and money that would result.
The Central Bank of Ireland will not hesitate to use sanctions where appropriate. However, its goal is to resolve issues to the benefit of the consumer speedily and efficiently.
View more detailed information on the Administrative Sanctions Process