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. […]
Deposit-guarantee schemes The European Union aims to protect the depositors of all credit institutions and to safeguard the stability of the banking system as a whole. Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes Deposit protection is a key aspect of completion of the internal market and forms an essential counterpart to the prudential supervision of […]
Insurance products An entity providing an insurance quotation must include information in the quotation as follows, assuming all the details provided by the consumer are correct and do not change: Amount of quotation, length of time for which it is valid, full name of the underwriter. The entity must set out clearly in the quotation provided any warranties or endorsements that apply. When the quotation […]
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 […]
Accounts Before opening a joint account for personal consumers, a credit institution must warn each personal customer of the consequences of operating a -joint account, specify transactions for which the consent of all is not required, ascertain whether statements are to be provided separately to each joint account holders and ascertain any limitations which personal consumers may wish to impose on the account. A regulated […]
The Consumer Protection Code The first comprehensive consumer protection code was introduced in 2006. It updated and greatly expanded a number of existing codes of conduct which applied to distinct sectors such as stockbrokers, investment intermediaries, lenders, and others. The code followed on from a radical reorganisation of the regulation of financial services which took effect in 2004. A new financial regulator (formerly it was […]
Clear and Timely The financial service provider must ensure that all information that is provided to consumers is clear, accurate and up-to-date and written in plain English. The information must be brought to the consumer’s attention. The presentation must not disguise to conceal or obscure important information. Information must be supplied to each consumer on a timely basis. The financial service provider must have regard […]
Deposit Accounts In relation to a term and notice deposit accounts with a balance of more than €20, a credit institution must at least annually provide a statement to the consumer which includes the following, opening balance, closing balance, additions and withdrawals, interest credited, charges, tax deducted, tax certificate details interest rates applied to other similar accounts available to the consumer from that institution where […]
Common advertising rules for regulated entities. 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. A regulatory disclosure statement confirming who regulates the financial service provider must be included in all advertisements. This would usually be the Central Bank of Ireland or if established in a foreign […]
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, 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 suspicions are […]
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 […]
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 […]
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 regulation of all financial services. The aim was both prudential […]
The minimum competency requirements commenced in 2011. They provide for 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 […]
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 endorsed […]
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 […]