Central Bank Reform
Financial Crisi Reform
In the wake of the financial crisis, the Central Bank Reform Act 2010 established the Central Bank of Ireland as a single regulator. It is led by the Governor of the Central Bank. The Irish Financial Services Regulatory Authority was dissolved and its functions were brought back under the umbrella of the Central Bank of Ireland.
Certain of its consumer functions were transferred to the National Consumer Agency established under the Consumer Protection Act 2007. These functions were later transferred to the Competition and Consumer Protection Commission.
The Central Bank and Financial Services Authority of Ireland was renamed the Central Bank of Ireland. They are managed and their affairs are controlled by the Central Bank Commission. The Commission is chaired by the Governor and includes the head of financial regulation, head of Central Banking, secretary general of the department of finance and six to  eight other appointees appointed by the Minister for Finance.
The 2010 legislation transferred certain of the Consumer Director powers of the Financial Regulator to the National Consumer Agency, now transferred to Competition and Consumer Protection Commission. The CCPC provides information to consumers in relation to financial services to promote financial education and capability. Certain functions are vested in both the Central Bank and the CCPC concurrently.
In 2011, the Central Bank Supervision and Enforcement Act became law. This provides more extensive protection for whistle-blowers and  greater regulatory powers for the Bank.
Functions
The Central Bank is responsible for
- the overall stability of the financial system,
- regulation of financial services in the best interests of consumers
- the operation of the payment and settlement system,
- analysis and comment to support national economic policy,
- such other functions as may be assigned.
The Bank may do anything necessary or reasonably incidental to the performance of its function. It participates in international monetary and financial services regulatory bodies. It publishes and collects data on monetary matters. It assists the Central Statistics Office in the compilation of financial and economic statistics.
The Central Bank has established a new strategic approach to supervision, particulars of which published in June 2010. This is intended to challenge and be more intrusive than the pre-existing scheme of regulation which emphasised principles of self-regulation to a greater extent.
Control Functions
The Bank has greater control over persons carrying out key positions within financial service providers. It may direct that a person should not be appointed or may require their removal or suspension. It or the institution must be satisfied that the person is a fit and proper person to hold the role.
A so-called control function is one where the person is likely to exercise significant influence on the conduct of affairs of the provider. The regulatory scheme seeks to control, monitor and ensure compliance with their obligations.
Where a person is involved in a provision of advice or assistance to customers in the course of a financial service or deals with or has control over customer’s property, there is a control function.
Certain control functions are subject to pre-approval if the role has a significant influence on the conduct of the financial services provider. The following key roles (amongst others) are subject to prior approval, namely directors, chief executive or secretary and persons reporting directly to them.
Persons performing control functions must comply with fitness and probity standards set out  in the codes. The Bank may require information regarding the proposed appointee.
Investigation of Control Functions
The head of financial regulation may investigate the conduct of persons carrying out control functions if there are reasons to suspect their fitness or probity. This may arise where
- the person does not have the necessary experience qualifications or skills,
- does not comply with the applicable standards on the code on fitness and probity,
- has engaged in serious misconduct,
- has provided false and misleading statements to the regulators,
- has failed to provide information when required
- has failed to comply with notices
- is guilty of any money-laundering, fraud or dishonesty offences.
A notice may be served on officers or employees requiring them to appear to give evidence relating to a matter or to produce a document. They may be required to answer questions and furnish documents.
A person who is being investigated may be suspended. This may be done, it  the head of financial regulation considers it necessary to prevent potential damage to the financial system and protect its user. The suspension notice gives notice and requires the person addressed to show cause within five days why the suspension should not be confirmed. It must be confirmed or lapses after 20 days. If it confirmed it may last for three months, subject to further extensions for three months.
Following an investigation, the head of financial regulation may if he forms the opinion that the person is not a fit and proper to perform the control function may issue a prohibition notice that prevents him from performing that role for the periods specified or indefinitely. The person concerned must be given the opportunity to make representations in relation to the order as are necessary to do justice.
FSO Council
The Financial Services Ombudsman Council has a supervisory role in relation to the Financial Services Ombudsman’s office. It prescribes guidelines under which the Ombudsman is to operate. It determines fees and charges and appoints the ombudsman and deputy financial services ombudsman. It keeps the operation of the bureau under review and advises the government.
The Council may make regulations as may be necessary to enable the Ombudsman to perform its function. They may prescribe
- matters which the Ombudsman may take into account when investigating and deciding on a complaint a complaint
- prescribe procedures in relation to complaints
- specify circumstances in which a complaint may be dismissed without considering the merits.
- specify that copies of complaints are to be made available.
Financial services ombudsman scheme
A complaint should be preceded by a letter of complaint to the financial services provider itself. That ombudsman may refuse a complaint if
- the complaint is frivolous or vexatious
- not made in good faith,
- trivial
- too removed in time to justify an investigation,
- an alternative means of redress exists
- the complainant has no interest or insufficient interest in the matter
It is a matter for the Ombudsman to determine whether a matter falls within its jurisdiction. The courts will only interfere if there is a patent error.
FSPO Process
The Ombudsman is obliged to consider dealing with the complaint by mediation in the first instance. The Ombudsman must at least offer the possibility of mediation. Such mediation is voluntary and the party may withdraw at any time. Evidence of anything said or done in the course of mediation is not admissible in subsequent proceedings before the Ombudsman or in a court.
The Ombudsman must investigate in accordance with constitutional justice and fair procedures. This may require an oral hearing in some cases, with  the right to challenge witnesses by cross-examination where the constitutional justice so requires. See the sections on constitutional justice/administrative law.
The Ombudsman has jurisdiction to decide the appropriate remedy. The courts will only interfere in the case of clear error.
There is a right of appeal to the decision of Ombudsman to the High Court.  This is not a rehearing. The Ombudsman’s exercise of powers may be reviewed in terms of conformity with  criteria of legal standards, reasonableness,proper considerations etc, much as in a judicial review challenge. On an appeal, the High Court may make such orders it appears appropriate including an order remitting the matter for review to the Ombudsman.
There have been a number of cases which have considered the role of the courts in appeals from the Financial Services Ombudsman. The appeal does not involve a  full investigation and rehearing. The court lacks the requisite investigatory powers. Instead, it reviews the decision taking account of the entire process and considers whether the decision was invalidated by a serious or significant errors
The appeal will proceed on the basis of materials before the Ombudsman. Further evidence may be allowed where this is in the interest of the justice.