Brokers’ compliance with reporting rules has improved

Financial brokers have become considerably more compliant with annual reporting requirements in recent years, according to a new review by the Central Bank.

However, the regulator said some retail intermediaries need to improve further in terms of the accuracy of data submitted in returns, the production of audited accounts, and in relation to voluntary revocation when no longer trading.

According to the Central Bank’s review, annual return submission levels have risen from 81 per cent in 2013 to 98 per cent this year, largely due to a programme it initiated four years ago which actively targets non-compliant firms.

Its review found, in the majority of cases, incorrect reporting is due to either a lack of understanding of reporting requirements or human error.

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The study also found that in some instances, intermediaries were not actively trading but were retaining their authorisation for future use, something that is not permitted.

‘Positive steps’

“The review highlights the positive steps the sector has taken with regard to annual return reporting, which is encouraging. The majority of firms in this sector are meeting reporting standards and the sector is on the right track - however there is more to do,” said Grainne McEvoy, director of consumer protection.

“We will continue to engage directly with those firms who currently fall short and expect them to take all remedial actions necessary. This includes making use of the full extent of our supervisory powers where required, to ensure firms are both compliant and consumer-centric in their approach going forward,” she added.