Constitutional Requirements Part 4 of the 2023 Act made changes to the operation of the ASP to clarify the processes involved, and to ensure that it conforms to the required standards of fairness in the administration of justice, in light of the decision of the Supreme Court in the case of Zalewski v. An Adjudication Officer and Others (2021). The Act makes changes to the […]
Extending F&P Regime The 2023 Act makes a series of amendments to Part 3 of the Central Bank Reform Act 2010, which deals with the Central Bank’s Fitness and Probity (F&P) Regime. These amendments will extend the F&P regime to certain categories of holding company and persons performing controlled functions in relation to them. They will also make changes to the operation of the F&P […]
Individual Accountability Framework Act 2023 The principal purpose of the Act is to confer powers on the Central Bank of Ireland to strengthen and enhance individual accountability in the financial services industry. This is to be achieved by prescribing responsibilities and providing for the allocation of responsibility and accountability for the management and operation of regulated financial service providers (RFSPs) to individuals while maintaining a […]
Annual accounts of banks and other financial institutions Council Directive 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions It seeks to harmonise the format and contents of the annual accounts, including consolidated accounts*, of all financial institutions within the European Union (EU). Key Points The directive applies to most credit institutions (e.g. banks) and other financial institutions, with a […]
The European Central Bank (ECB) Protocol (No 4) – statute of the European System of Central Banks and of the European Central Bank It lays down the statute of the European System of Central Banks (ESCB) and of the European Central Bank (ECB). Key Points The ECB is the central bank of the euro area and is an independent European Union (EU) institution, representing the […]
European Insurance and Occupational Pensions Authority (EIOPA) The 2008 financial crisis brought to light shortcomings in European Union (EU) financial supervision. Based in Frankfurt, the European Insurance and Occupational Pensions Authority (EIOPA) was created in 2010 to prevent the risks of destabilising the insurance sector. Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory […]
European Banking Authority (EBA) Regulation (EU) No 1093/2010 establishing the European Banking Authority It sets up the EU agency which works to ensure effective and consistent prudential regulation and supervision across the European banking sector. The agency’s overall objectives are to maintain financial stability in the EU and to safeguard the integrity, efficiency and orderly functioning of the banking sector. Consistent application of EU law […]
Supervising banks’ health: ECB accountability and transparency The European Central Bank (ECB) is accountable to the European Parliament when exercising its power of European banking supervision. Interinstitutional Agreement 2013/694/EU between the European Parliament and the European Central Bank on the practical modalities of the exercise of democratic accountability and oversight over the exercise of the tasks conferred on the ECB within the framework of the […]
Financial Institutions Accounts European Union directives lay down accounting provisions for banks and other financial institutions. They prescribe the form of balance sheet layout, assets and liabilities presentation. Certain balance sheet entries must be shown in particular ways. There are two standard profit and loss account layout. There are special provisions in relation to on certain types of item in the profit and loss account. […]
Pensions Ombudsman The Pensions Ombudsman has jurisdiction in relation to certain pension matters. The Pension Ombudsman investigates complaints referred by actual or potential beneficiaries of occupational pension schemes or PRSAs where the loss is alleged to have been suffered by maladministration. It may investigate a dispute in relation to of facts and law by actual or potential beneficiaries in relation to acts done in the […]
General Advertising Rules The following rules apply to advertisements by regulated financial service providers other than those specifically regulated by the European Union Consumer Credit Act Regulations 2010.An advertisement is any commercial communication in respect of a regulated entity addressed to the consumer public or a section of it, the purpose of which is to advertise a regulated activity or regulated entity. It does not […]
Inquiries In the event of non-compliance with a legal requirement or code of conduct binding on a financial institution, the Financial Regulator may conduct investigations and impose sanctions. The first step is if the Financial Regulator suspects that on reasonable grounds that a contravention is taking place, it can hold an inquiry. It must give notice to the provider specifying the grounds on which the […]
FSO The office of the Financial Services Ombudsman was established in 2004. It may hear and adjudicate on complaints against a very wide range of financial institutions. This includes, for example, banks, insurance companies, building societies, health insurers, mortgage insurance and credit intermediaries, moneylenders and stockbrokers. The office is to investigate a complaint if it is within its jurisdiction. The complaint must be made within […]
Key Risks Financial services include commercial banking, securities, investment services and insurance. These functions have been traditionally regulated, given their importance to the functioning of the economy and for consumer protection. A financial services business carries the risk of insolvency. Insolvency risk is said to be made up of a number of elements, including credit risk (risk of non-payment by customers and counterparties), market risk […]
Regulation Financial services are regulated by the Central Bank. Until 2010, regulation of financial services was divided between two branches of the same entity — was regulated by the Central Bank and Financial Services Authority. The Central Bank and Financial Services Authority of Ireland was established on 1st May 2003. The Financial Regulator was responsible for the regulation of all financial services. The aim was […]
Application The minimum competency requirements commenced in 2011. They provide minimum professional standards for persons providing certain financial services, particularly those dealing with consumers. The requirements came into effect in December 2011 and apply to regulated firms and persons carrying out controlled functions within those firms who provide advice to consumers and retail financial products arrange or offered to arrange retail financial products for consumers […]
Approval Regime The Fitness and Probity regime and the fitness and probity requirements apply to regulated financial service providers since December 2011. Senior control positions are prescribed, Preapproval of controlled functions is required in relation to regulated service providers. The prior approval of the Central Bank is required before an individual can be appointed to such a position. The individual must complete a questionnaire, which is […]
Supervisory Authorities Three European supervisory authorities (ESAs) were formed as part of the European Union banking reforms following the financial crisis. The ESAs are part of the ESFS (European System of Financial Supervision) together with the national regulators and the ESRB (European Systematic Risk Board). Each is a separate legal entity with significant autonomy. The ESAs are designed to address systematic risks. Governance of the […]