Under Part IIIC of the Central Bank Act 1942 (as amended) (“the Act”), the Central Bank may hold an inquiry to determine whether or not a financial service provider is committing or has committed a suspected prescribed contravention. The Central Bank may also hold an inquiry to determine whether or not a person concerned in the management of a regulated financial service provider is participating or has participated in the commission of a suspected prescribed contravention by the financial service provider.
Part IIIC of the Act sets out the framework for how Administrative Sanctions Procedures (“ASP”) inquiries are to be carried out.
The sanctions are outlined in section 33AQ(5) of the Act:
If the Inquiry Members find that a person concerned has participated in the commission of a contravention, the Inquiry Members may impose one or more of the following sanctions:
(a) a caution or reprimand;
(b) a direction to pay to the Bank a monetary penalty not exceeding the prescribed amount;
(c) a direction disqualifying the person from being concerned in the management of a regulated financial service provider for such period as is specified in the order;
(d) if the person is found to be still participating in the commission of the contravention, a direction ordering the person to cease participating in the commission of the contravention;
(e) a direction to pay to the Bank all or a specified part of the costs incurred by the Bank in holding the inquiry and in investigating the matter to which the inquiry relates.
Section 33AQ(5)(e) of the Act provides that If the Inquiry Members find that a person concerned has participated in the commission of a contravention, they may direct the person concerned to pay to the Bank all or a specified part of the costs incurred by the Bank in holding the inquiry and in investigating the matter to which the inquiry relates.
On 19 December 2014, the Enforcement Directorate of the Central Bank referred its investigation to the Regulatory Decisions Unit (RDU) of the Central Bank to hold an Inquiry. On 9 July 2015, the RDU issued a Notice of Inquiry to the successors of INBS and to five persons concerned in the management of INBS.
The Central Bank is not currently in a position to estimate when the Inquiry is likely to conclude.
As the Inquiry is ongoing, the Central Bank is not commenting on matters related to the cost of the Inquiry at this time.
Similarly, it would not be appropriate for me to comment on this matter until the Inquiry has concluded.
