Under section 33AO the Central Bank Act, 1942 (as amended) provides for the holding of an inquiry into a contravention of financial services legislation by a Regulated Financial Services Provider (RFSP). The participation link in this provision requires the Central Bank to first prove a contravention of financial services legislation against the RFSP before it can take an action against an individual.
As the Deputy is aware, the introduction of the Senior Executive Accountability Regime (SEAR) by means of legislation is a priority for this Government and work has been ongoing for some time on the details of the proposed legislative proposal. I envisage that the SEAR will require firms to set out clearly the roles and responsibilities of their senior executives including the production of Management Responsibility Maps documenting key management and governance arrangements in a comprehensive and accessible way. This should ensure that there is clarity as to who is responsible for what. The legislation will also include Conduct Standards for individuals and firms, giving the Central Bank additional powers to enforce obligations on financial services providers, and relevant individuals working within them, with respect to expected standards of conduct. The legislation will enhance the suit of powers that the Central Bank will have and as regards the Deputy’s specific query, The legislation will break the participation link to facilitate the Central Bank in taking action against either a firm or an individual where a contravention of financial services legislation occurs.
