Dáil Éireann Debate, Tuesday - 1 February 2005
32 Mr. Perry asked the Minister for Finance if he is satisfied that penalties for non-compliance in the banking sector are adequate in view of the recent investigations of non-compliance at banks (details supplied). [2563/05]
View answerThe Central Bank and Financial Services Authority of Ireland Act 2004, which came into effect on 1 August 2004, gave IFSRA a range of new powers to enable it to promote compliance with regulatory requirements in the banking sector. Under this legislation, IFSRA can require banks to furnish compliance statements, and it can impose sanctions on financial services providers found to be in breach of regulatory requirements prescribed under the Act. Fines up to €5 million can be imposed in the case of regulated institutions and up to €500,000 for breaches by individuals. The Act also allows for the disqualification of a person from the management of a financial services firm. IFSRA has recently entered into a public consultation about the implementation of these provisions. These penalties and sanctions, which are additional to the existing penalties and enforcement provisions in legislation governing individual financial services, will help to ensure that the kind of non-compliance seen in recently reported cases should not happen in the future. They cannot be applied retrospectively as the Act commenced in August 2004. I am satisfied that these penalties are adequate for the future protection of consumers of financial services. However, if further examination by IFSRA or my Department indicates that additional powers are required, I will address that as a matter of priority.
