Financial Services

The Financial Crisis

Background to Financial Crisis The worldwide financial crisis which commenced in 2007 followed a period of over 10 years of relatively low inflation and interest rates. In the United States, interest rates were maintained at a low rate, following the bursting of the so called “dot.com”… Read the rest

Supervisory Tools

Review The Central Bank Supervision and Enforcement Act 2013 sought to significantly improve and enhance the Central Bank’s powers of supervision over credit institution and financial service providers generally. The Central Bank may require a regulated financial services provider or any related undertaking to it by notice, a report on any specified matter in relation to which it has the power to require the production of information documents of books under financial services legislation.… Read the rest

Retail Credit Firms

Home Reversion and Retail Credit Firms 2007 legislation regulated new categories of financial services entity for the first time. Home reversion firms and retail credit firms were brought within regulation.The 2007 legislation applied the general range of sanctions and regulation applicable to regulated financial firms to retail credit providers and home reversion firms A home reversion firm is a business providing and entering home reversion agreements. … Read the rest

Reformed Regulation

Reorganisation In the wake of the financial crisis, the Central Bank Reform Act 2010 established the Central Bank of Ireland as a single regulator. It is led by the Governor of the Central Bank. The Irish Financial Services Regulatory Authority was dissolved and its functions were brought back under the umbrella of the Central Bank of Ireland.… Read the rest

Reform and Enforcement

Central Bank In the wake of the financial crisis, the Central Bank Reform Act 2010 established the Central Bank of Ireland as a single regulator. It is led by the Governor of the Central Bank. The Irish Financial Services Regulatory Authority was dissolved and its functions were brought back under the umbrella of the Central Bank of Ireland.… Read the rest

Minimum Competence

Minimum Competence Requirements The minimum competency requirements commenced in 2011. They provide for minimum professional standards for persons providing certain financial services, particularly those dealing with consumers. The requirements came into effect in December 2011 and apply to regulated firms and persons carrying out controlled functions within those firms who provide advice to consumers and retail financial products arrange or offered to arrange retail financial products for consumers undertake a specified function.… Read the rest

International Standards

Basel Accords The Basel Committee comprises the Central Bank governance of the larger nations. The committee publishes regulatory and supervisory standards and guidelines on best practice. Its principles are reflected in European Union law. The late 1980s and early 1990s saw a shift from detail rules-based regulation to the principles-based regulation of credit institutions and other financial service providers. … Read the rest

Governance & Compliance

Required Appointments The Central Bank requires the appointment of a Compliance Officer and non-executive directors. It may also require internal auditors. Directors and other senior officers must comply with the fitness and probity requirements. The 2011 Standards of Fitness and Probity for persons carrying out functions in regulated entities, provides for two categories of persons. … Read the rest

Fitness & Probity Requirements

Controlled Functions The Bank has greater control over persons carrying out key positions within financial service providers. It may direct that a person should not be appointed or may require their removal or suspension. It or the institution must be satisfied that the person is a fit and proper person to hold the role.… Read the rest

Financial Services Regulation

Rationale for Regulation Regulation applies in most countries. It has been harmonized on an EU wide basis. The level of financial services regulation varies in its specifications from state to state. An aim of regulation is to protect the integrity of markets.… Read the rest