Central Bank of Ireland issues Consultation Paper on updated Administrative Sanctions Procedure guidelines
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The consultation paper details how the CBI proposes to implement the ASP, following enactment of the Central Bank (Individual Accountability Framework) Act 2023 (the "Act"). Please see our previous update in relation to the Act, available here.
The ASP guidelines provide a roadmap for how the CBI intends to deal with sanctions in the future. According to the CBI, the purpose of the consultation paper is to ensure that the ASP guidelines are practical, clear, and will support a smooth transition to the operation of the enhanced ASP procedures and processes.
Some key proposals of the draft ASP guidelines include:
- ASP Investigations
- A Notice of Investigation will be issued to the subject of the ASP
- The Notice of Investigation will set out the breaches and conduct under investigation and will also include the material being relied upon
- A Responsible Authorised Officer (the "RAO") will be appointed at the commencement of each investigation
- The RAO will inform the investigation subject of the progress of the investigation
- An investigation report will be prepared and provided to the investigation subject at the end of the investigation phase
- Investigation subjects can make submissions in response to the report and engage with the RAO on disclosure
- ASP Inquiries
- There is now a designated Regulatory Decision Panel, established by the Minister for Finance for ASP Inquiries
- Disclosure of documents will occur at investigation stage
- The standard of proof to be applied at ASP Inquiries is the civil standard, on the balance of probabilities
- Provision for new confidentiality obligations which, if breached, could lead to the commission of an offence
- Once a decision is made at Inquiry, the investigation subject will be notified and can make submissions on sanctions
- Sanctions
- Updates to the published guidance on the CBI's approach to sanction
- Changes to the disqualification sanction for individuals to a more targeted disqualification
- A new sanction which will provide for imposing conditions on the performance of any controlled function by an individual
- An expansion of the sanctioning factors that will be considered by the CBI at sanction stage, which include the individual's financial position and level of seniority.
- ASP Settlements
- Provision for a new settlement procedure with three distinct settlement processes – (i) Undisputed Facts Settlement (ii) Investigation Report Settlement and (iii) No Admissions Settlement
- Discounts on monetary penalties for undisputed fact settlement (up to 30%) and investigation report settlement (up to 10%)
- The settlement processes apply to monetary penalties only
- Settlements reached in (i) and (ii) above will now require confirmation by the High Court
The CBI consultation is open until 14 September 2023.
It will be interesting to observe how industry feedback will shape any amendments made to the guidelines.
Please do not hesitate to contact James Roche, Eimear Burke, or Barry Fagan with any queries.