Dáil Éireann Debate, Tuesday - 8 March 2022
201. Deputy Noel Grealish asked the Minister for Finance if he will take steps to protect the assets of thousands of customers of a bank (details supplied) who are being forced by the bank to liquidate their investments in the coming weeks ahead of the departure by the bank from Ireland at a time of huge turmoil in international markets that will see the value of their holdings fall substantially; and if he will make a statement on the matter. [12440/22]
Amharc ar fhreagraAs Minister for Finance, I have no role in the operational matters of any bank in the State. Decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. As the deputy knows that the Central Bank of Ireland is the independent financial services regulator and is responsible for monitoring and enforcing the compliance of regulated financial services providers with their relevant obligations.
According to the Central Bank of Ireland, the prospectuses of investment funds will typically set out the terms on which a compulsory redemption can take place. As such the powers available to directors of an investment fund to compulsorily redeem investors form a contractual term as between the investor and the investment fund.
While decisions related to the strategic direction of regulated firms are for the boards of those firms, I am advised by the Central Bank of Ireland that they have made it clear to the management of the bank in question that it expects a customer-focused approach to be taken in all aspects of business including the area mentioned by the Deputy. I am further advised by the Central Bank of Ireland that it expects regulated entities to have a sound legal basis on which to redeem customer investments, and to provide clear and timely notice to affected customers.
