Dáil Éireann Debate, Wednesday - 2 November 2011
39 Deputy Robert Dowds asked the Minister for Finance if he is satisfied that the current legislation covering criminal prosecutions brought against persons in commercial banks which were overcharging customers is sufficiently robust to deter such behaviour in the future. [32393/11]
Amharc ar fhreagraThe Central Bank's supervisory powers and its administrative sanctions regime, together with the potential for criminal prosecution by the Director of Public Prosecutions in more serious cases, provide significant powers to regulate any breaches. Furthermore the Central Bank (Supervision and Enforcement) Bill 2011, currently before the Houses of the Oireachtas, provides for the strengthening of the ability of the Central Bank to police, investigate and punish such practices in the future, including providing that the limit of penalties that can be imposed under the administrative sanctions regime will be increased to €10,000,000 per contravention.
In cases of systematic overcharging uncovered by the Central Bank, the Bank works with the financial institution in question to ensure that all customers are refunded the amounts overcharged and ensures that the institution remedies the problems that occurred within its internal business processes. The Central Bank has concluded two cases under its administrative sanctions regime. Details of these cases and the settlement terms can be found on the Central Bank's website www.centralbank.ie.
The Deputy might wish to note that it is not permitted to impose financial penalties under the administrative sanctions regime and, at the same time, bring a criminal prosecution. The administrative sanctions regime is a strong deterrent due to the significantly higher financial penalties available under it.
In view of the availability of the Central Bank's supervisory powers and its administrative sanctions regime, the enhancement of these powers through the Central Bank (Supervision and Enforcement) Bill 2011 and the potential for criminal prosecution by the Director of Public Prosecutions I am satisfied that the legislative framework governing these practices provides the authorities with sufficient powers to regulate any breaches.
40 Deputy Michael McGrath asked the Minister for Finance if he has made a decision on the request by AIB to approve a salary in excess of €500,000 for a new chief executive; the current situation with regard to filling the vacancy; if a formal offer of the position has been made by the bank; if he will provide details of the remuneration package which has been proposed; and if he will make a statement on the matter. [32426/11]
Amharc ar fhreagraThe Deputy will be aware, from public statements made on the issue, that proposals have been made by the bank regarding proposed remuneration arrangements for the position of Chief Executive Officer. The matter is under consideration and no final decision has been made.
It is Government policy that the base salary ceiling of €500,000 that applies to the position should be honoured.
The position remains vacant at the moment. The filling of this post by a suitable, qualified, experienced and highly motivated individual will be a critical factor in driving the bank forward to fill the mandate bestowed upon it by the Government as part of the restructuring of the banking sector.
