Dáil Éireann Debate, Thursday - 8 November 2018
40. Deputy Thomas P. Broughan asked the Minister for Finance his plans to introduce legislation to make senior bankers accountable for their banking decisions; if this legislation will contain sanctions comparable to UK financial accountability rules introduced in 2013 and 2016; if not, if the legislation will contain criminal sanctions; and if he will make a statement on the matter. [46247/18]
View answerAs the Deputy will be aware, I have long been on the record as stating that there are cultural failings in the banking sector that must be addressed. I and my colleagues in Government are supportive of measures to change behaviour, operations and organisational culture within the financial sector, in order to keep the customer at the heart of its operations.
The Central Bank's proposals to enhance individual accountability by way of Conduct Standards for all regulated financial services providers and the individuals working within them; a Senior Executive Accountability Regime (similar to the Senior Managers Regime in the UK); and, enhancements to the current Fitness and Probity Regime, are being considered as part of the work of the Government's forthcoming Central Bank (Amendment) Bill.
As I have already stated these proposals are set out in the Central Bank Section 6A Report on the culture and behaviour of the main retail banks that was drafted by the Central Bank in response to my request in November 2017, on foot of the serious cultural failings in banks brought to light in the Tracker Mortgage Examination.
My Department’s analysis of the report found that it is a detailed, qualitative and considered analysis of culture within the banking sector. The report’s recommendations are intended to drive positive changes in terms of wider banking culture, greater delegation of responsibilities, and enhanced accountability. The report importantly focuses on simplifying the taking of sanctions against individuals who fail in their financial sector roles.
Officials in my Department are engaging with the Central Bank and other stakeholders in order to identify the legislative changes that are required to implement such a customer centric culture and to enhance individual accountability. Policy matters with regard to how proposals may be implemented are currently being examined including an appraisal of international best practice. I intend to bring forward heads of a Bill for approval in Q1 2019.
