Financial institutions are facing greater scrutiny under a new enforcement strategy published by the Central Bank today.
As part of the plan, a dedicated enforcement directorate is being established, with the aim of to restoring credibility in the financial markets.
Those involved in managing financial institutions will find their actions come under particular focus, according to the new plans.
The strategy has a number of key objectives, including improving effective compliance through the “robust application” of Central Bank’s enforcement powers.
Enforcement activity is to be prioritised according to the risk of the financial institution, ensuring that resources will be directed to areas of greater risk.
Director of Enforcement Peter Oakes, said the body was committed to the restoration of credibility in financial institutions and financial markets.
“The establishment of a dedicated Enforcement Directorate is a significant demonstration of this commitment and will help us achieve our statutory objective of effective regulation while ensuring that the best interests of consumers are protected,” he said.
“Regulated firms can expect increased enforcement activity, based upon our existing powers, new powers under the Central Bank Reform Act 2010 and additional enforcement powers proposed for 2011. We will not hesitate to use the full extent of our sanctioning powers where necessary.”
The Central Bank’s head of financial regulation Matthew Elderfield said the Central Bank is determined to use enforcement action to improve standards of compliance in the financial services industry.
“The boards of directors and senior management of financial services companies operating in Ireland need to satisfy themselves that they are operating in accordance with regulatory standards in order to avoid the reputational and financial costs of possible enforcement action,” he said.