The Central Bank has published final guidelines on how it will implement stronger powers to investigate and sanction firms or individuals for breaches of financial-services legislation.

The publication follows a 12-week consultation process on the Administrative Sanctions Procedure (ASP).

The consultation process arose because of changes to the ASP made by the Central Bank (Individual Accountability Framework) Act 2023.

“Enforcement actions are taken with the stability and integrity of the financial system in mind – our actions are targeted and proportionate,” said Seána Cunningham (Director of Enforcement and Anti-Money Laundering).

“Our new ASP guidelines provide enhanced transparency and clarity on what the subjects of enforcement actions can expect throughout the process,” she added.

Authorised officers

The bank has published a feedback statement, setting out its response to issues or concerns raised by stakeholders during the consultation process.

The regulator said that it had amended its ASP guidelines to include a new section describing the role and responsibilities of authorised officers who will carry out investigations.

It has also responded to questions about the disclosure of confidential information to third parties, saying that it will “authorise such disclosure where it is considered reasonably necessary to do so”.

Legal privilege

The bank has also amended its ASP guidelines to clarify that individuals may be given more time than the seven days set out in draft guidelines to make submissions to investigations.

Other changes have been made in response to concerns raised about legal privilege and disclosure agreements.

The bank said that there was nothing in legislation that compelled a subject of an investigation to disclose legally privileged information to it.

“We have amended the ASP guidelines to clarify that entry into a disclosure agreement by the subject of an investigation is done entirely on a voluntary basis,” the feedback statement says.

Hearings in public

The regulator also said that inquiry members would issue a public notice in the event of an investigation finding that no prescribed contravention had been committed.

It added, however, that there was a statutory presumption that all inquiry hearings would be held in public.

“Only in the exceptional circumstance set out in the applicable legislation will inquiry hearings be held in private,” the regulator stated.

The bank has also amended the guidelines to set out how it would manage potential conflicts of interest among members of a panel selected to carry out an inquiry.