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IFSRA very poor communication on sanctions

In October 2005 statutory guidelines to the Administrative Sanctions Procedure were issued. These guidelines were issued by the Authority pursuant to a power in the 2004 Act and expand for staff of the Financial Regulator on the detail in the 2004 Act on how the Administrative Sanctions Procedure is to be operated. In addition, a non-statutory “Outline of the Administrative Sanctions Procedure” was also published. This is a high level explanation for regulated financial service providers of the process and procedure involved in the Administrative Sanctions Procedure and will be updated fromtime to time in light of experience
The following sanctions may be imposed:

Caution or reprimand;
Direction to refund or withhold all or part of an amount of money charged or paid, or to be
charged or paid, for the provision of a financial service;
Monetary penalty (not exceeding €5,000,000 in the case of a corporate and unincorporated
body, not exceeding €500,000 in the case of a person);
Direction disqualifying a person from being concerned in the management of a regulated
financial service provider;
Direction to cease the contravention if it is found the contravention is continuing;
Direction to pay all or part of the costs of the investigation and inquiry.

The Irish Financial Services Regulatory Authority (‘Financial Services Regulator’) does not communicate the cases. The information that is provided is less detailed than the information that is provided in Luxembourg by the regulator (CSSF) in the annual reports.

But the Irish Financial Services Regulatory Authority publishes warning notices naming firms, which operate, as investment business firms in Ireland without appropriate authorisation. Under the Investment Intermediaries Act, 1995, it is a criminal offence for an investment firm to operate in Ireland unless it has appropriate authorisation from the Financial Services Regulator. Clients of firms, which are not authorised, are not eligible for compensation from the Investor Compensation scheme.
In August 1998 the Central Bank of Ireland obtained legal powers to warn publicly about firms, which are not authorised. On 1 May 2003 these powers were transferred to the Financial Services Regulator.


Administrative Sanctions Guidelines

Outline of Administrative Sanctions Procedure

CP8 Consultation paper on administrative sanctions

Financial Regulator Response to CP8 Feedback

Response by Irish Bankers Federation (‘IBF’)

Warning Notices

07:20 Posted in Ireland | Permalink | Comments (0)

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