Financial Crime World

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CBI Scrutinizes Financial Firms: Key Areas Assessed

In a recent interview with [Interviewee’s Name], Chief Executive Officer at [Company Name], we delved into the world of financial regulation in Ireland, specifically exploring the key areas assessed by the Central Bank of Ireland (CBI) when evaluating an application for authorisation.

Key Areas Assessed

According to [Interviewee’s Name], “The CBI places great emphasis on ensuring that financial firms are well-governed and compliant with regulatory requirements. The organisation of the applicant, business plan, financial information, initial capital, and own funds are all critical factors in determining authorisation.”

In addition to these key areas, the CBI also examines:

  • The nature of services proposed by the firm
  • Operational procedures
  • Outsourcing arrangements
  • Internal governance, controls, and risk management
  • Directors’ and managers’ qualifications and regulatory background

Statutory Authority

The Central Bank Acts 1942-2018 (as amended) provide the legislative basis for the CBI’s jurisdiction. The Central Bank Reform Act 2010 introduced new standards of fitness and probity applicable to key individuals in financial services firms.

Principal Laws and Financial Services Authority Rules

Financial services firms must comply with various pieces of legislation, including:

  • The Central Bank Acts 1942-2018 (as amended)
  • EU legislation
  • Secondary legislation
  • Codes issued under the Central Bank Acts 1942-2018 (as amended)
  • Guidance from EU bodies like the European Supervisory Authorities

Scope of Regulation

The CBI’s Fitness and Probity Regime ensures that individuals appointed to key positions within a regulated financial services firm are competent and capable. The regulator also conducts conduct of business supervision, setting out rules addressing:

  • Consumer protection
  • Client assets
  • Investor money
  • And more

Regulated firms must hold a minimum level of capital as specified in EU and domestic legislation, submit capital returns to the CBI on a periodic basis, and comply with anti-money laundering and countering the financing of terrorism legislation.

Additional Requirements

In addition to regulatory oversight by the CBI, financial services firms are subject to oversight from other Irish regulatory bodies, including:

  • The Data Protection Commission
  • Financial Services and Pensions Ombudsman
  • Competition and Consumer Protection Commission
  • Advertising Standards Authority for Ireland
  • Professional regulatory bodies like the Law Society and Institute of Banking

Correct as of

The information above is accurate as of 26 January 2021.