CBI’s Oversight of Financial Services Firms: A Closer Look
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In an exclusive interview with the Central Bank of Ireland (CBI), we gained insight into the key areas assessed by the regulator when considering applications for authorisation from financial services firms.
Factors Considered in Authorisation Applications
According to the CBI, the following factors are crucial in determining whether a firm is suitable for operation in Ireland:
- Organisation and business plan of the applicant
- Financial information of the applicant
- Nature of services proposed by the firm
- Operational procedures
- Outsourcing arrangements
- Internal governance, controls, and risk management practices
Effective Control and Governance
“Effective control of the entity must lie within Ireland,” emphasized the CBI spokesperson. “This means that decision-making at board and committee levels, as well as significant senior management presence with responsibility for financial control, compliance, and risk management, should be located in the country.”
Regulatory Jurisdiction
The CBI’s jurisdiction is rooted in the Central Bank Acts 1942-2018, which provide the legislative basis for its authority. The regulator has also enhanced its enforcement powers through the Central Bank (Supervision and Enforcement) Act 2013.
Other Regulatory Bodies in Ireland
In addition to the CBI, other regulatory bodies in Ireland play a crucial role in overseeing financial services firms:
- Data Protection Commission
- Financial Services and Pensions Ombudsman
- Competition and Consumer Protection Commission
- Professional regulatory bodies such as the Law Society and the Institute of Banking
Key Laws and Regulations
Financial services firms operating in Ireland must comply with various pieces of legislation, including:
- Central Bank Acts 1942-2018
- EU directives
- Secondary legislation
- Guidelines issued by the CBI to assist firms in meeting their obligations
Scope of Regulation
The CBI regulates a wide range of financial services providers and products, including:
- Banks
- Investment firms
- Payment service providers
- E-money institutions
- The Fitness and Probity Regime ensures that individuals appointed to key positions within regulated firms are competent and capable.
Business Supervision
The CBI conducts business supervision for financial services firms, which includes monitoring compliance with conduct of business rules, prudential standards, and anti-money laundering and countering the financing of terrorism legislation.
Additional Requirements
In addition to regulatory requirements, financial services firms in Ireland may also be subject to additional obligations imposed by:
- Self-regulatory bodies
- Designated professional bodies
- Other financial services organisations
These include reporting requirements, regular review meetings, on-site inspections, and adherence to industry codes of conduct.
Law Stated Date
The information above is accurate as of 26 January 2021.