We implement our supervisory role by:
- Processing applications from financial services providers for authorisation in Ireland
- Monitoring compliance with prudential standards, primarily through examinating prudential returns (weekly, monthly and annual), financial statements and annual reports, conducting regular review meetings and on-site inspections
- Developing systems and procedures to monitor activities and detect non-compliance by financial service providers
- Issuing guidance notes to enhance our supervisory oversight due to continued growth and changes in financial markets
- Supporting the development of domestic legislation and implementing EU regulations and international standards
Our supervisory activities
The following topics contain more information on some of our supervisory activities.
Inspections & review meetings
Inspections and review meetings are a critical element of our supervisory process. Here is a general overview of the process for conducting inspections and review meetings.
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Inspections |
Review meetings |
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Aim
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Confirm compliance with our regulatory requirements, assess corporate governance structures, internal controls and risk management systems.
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Cover compliance issues and outstanding issues from last inspection
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Notification
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In writing at least 10 working days prior to commencement date with details of focus of the inspection
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In writing prior to meeting date with agenda for meeting.
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Duration
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One day to two weeks depending on size of financial service provider
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Half-day
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Location
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Off-site
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On and Off-site
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Conclusion
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Post-inspection letter issued within 30 working days of close-out meeting (This deadline will not apply to themed inspections.)
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N/A
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Cross-border supervision
Under the European Union (EU) passporting rules, as set out in a number of Directives, a financial service provider authorised in one EU Member State can establish as a branch in another Member State and/or provide services in another Member State without establishing a physical presence there.
When a financial service provider authorised in Ireland by the Financial Regulator (home state regulator) is operating under a passporting arrangement in another EU member state (host state regulator) the Financial Regulator, as home state regulator, is responsible for the prudential supervision of that entity.
On that basis, the Financial Regulator’s supervisory responsibilities cover:
- Irish-authorised financial service groups and other providers with a head office in Ireland
- Irish subsidiaries of financial service groups whose head office is authorised by an overseas regulator
- Overseas branches of Irish authorised financial service providers
- Liquidity of EU branches operating in Ireland (joint responsibility with home state regulator)
- Compliance with anti-money laundering regulations by EU branches operating in Ireland
- Compliance with conduct of business rules by all financial service providers operating in Ireland (including those authorised elsewhere)
Fit & proper requirements
Directors and Managers of financial service providers regulated by the Financial Regulator are required to meet standards of competence and probity known as the “fit and proper” standards.
Under these standards they are required to have the necessary qualifications, skills and experience to perform the duties of their position and to be honest, fair and ethical.
The Financial Regulator has developed a common test that applies across most financial service providers subject to our regulation.
The exceptions are:
- Credit Unions (separate regime to be developed)
- Moneylenders (other regime applies)
- Mortgage intermediaries (other regime applies)
For information on approval of persons, see 
fit & proper requirements.
Before being appointed, a new Director or Manager of a financial service provider must complete an Individual Questionnaire (IQ), which must be endorsed by the proposing financial service provider and submitted for approval to the Financial Regulator.
Consumer protection issues
The Financial Regulator has a statutory role in relation to consumer protection. We have introduced a number of codes of conduct to give added protections to consumers when dealing with financial services providers.
Read more about the Consumer Protection Code and how we monitor compliance with this Code.
Regulatory actions (administrative sanctions)
In August 2004, legislation provided powers for the Financial Regulator to impose sanctions for prescribed contraventions of legislation or regulatory rules.
The Financial Regulator has issued Guidelines to the Administrative Sanctions Procedure and an Outline of the Administrative Sanctions Procedure.