Lawyers at DLA Piper say that the Central Bank of Ireland (CBI) imposed a record level of fines on financial institutions last year.

The regulator slapped fines totalling €213.6 million on eight firms – including a record €100 million penalty for Bank of Ireland due to failings linked to tracker mortgages.

In a note on the firm’s website, DLA Piper lawyers Brian Hunt and Lindi Raath say that the total figure for 2022 represents a “sharp, yet consistent” year-on-year increase compared with the level of fines imposed in previous years.

The figure for 2021 was just under €67 million, while the regulator levied fines of €24.5 million in 2020.

Danske fine a first

The lawyers write that 2022 was exceptional, due to the large fines faced by Bank of Ireland, AIB, and EBS for tracker-mortgage issues.

They also note the fine imposed on Denmark’s Danske Bank A/S – the first on a firm incorporated and supervised outside Ireland, but operating in Ireland as a branch.

“This sets an important precedent for the CBI to take further enforcement actions against firms that it supervises purely on a conduct-of-business basis,” the lawyers point out.

The note adds that last year’s tracker fines are likely to free up valuable resources within the Central Bank’s enforcement division, “who will undoubtedly be seeking out other opportunities to scrutinise regulatory breaches and hold firms to account”.

The lawyers add that 2023 will see individual accountability taking centre stage, as the Central Bank (Individual Accountability) Bill 2022 will be enacted.