Michael McGrath (Cork South Central, Fianna Fail)
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121. To ask the Minister for Finance the status of all investigations into the collapse of Custom House Capital; and if he will make a statement on the matter. [32470/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank's investigation into Custom House Capital Ltd (in Liquidation) and persons concerned in its management has been on-going since the publication of the Final Report to the High Court by Court Appointed Inspectors dated 19 October 2011.

Upon presentation of the Final Inspectors' Report on Custom House Capital Ltd (CHC) to the High Court in October 2011, Justice Hogan ordered that CHC be wound up immediately.  It should be noted that copies of the Final Report have been provided to other relevant state authorities for their consideration i.e. the Minister for Justice and Equality, to the Director of Public Prosecutions, to the Director of Corporate Enforcement, to the Revenue Commissioners and to the Garda Commissioner. 

The Central Bank provides regular updates on Custom House Capital on its website.  Following consultation with An Garda Siochána, the Central Bank's investigation has been deferred pending completion of investigations by An Garda Síochána.

In order to enhance the investor protection legislative framework, the Central Bank has been provided with extensive new powers since the onset of the financial crises to prevent the loss of client assets as occurred in the case of Custom House Capital. The principal developments are set out below:

Client Assets Regime

An independent review of the Regulatory Regime for the Safekeeping of Client Assets was published by the Central Bank in 2012 and is available on the Central Bank website. The Central Bank accepted the specific recommendations contained in this independent review and established a process of implementing all of the necessary changes required. In 2013 the Central Bank published on its website a Consultation Paper on Client Assets Regulations and Guidance, which will replace the existing client assets requirements (issued in 2007). It is envisaged that the new rules for the Safekeeping of Client Assets will be in place before the end of the year.

New rules in respect of key management positions 

I have brought forward a very wide range of statutory powers under the Central Bank Reform Act 2010, which sets out a far-reaching regime for the Central Bank to set out and enforce standards of fitness and probity across the financial service sector.

Enhanced monitoring and enforcement powers for the Central Bank 

The Central Bank (Supervision and Enforcement) Act 2013 also sets out a number of new provisions that are relevant. The fitness and probity provisions are reinforced by the whistleblower protections. The Act also provides for the Central Bank to commission, as part of the proper and effective regulation of financial service providers, an independent expert report at the cost of the financial service provider. It strengthens the authorised officer regime, enables the Central Bank to secure assurances from auditors of regulated financial service providers.  It also strengthens the enforcement powers of the Central Bank and provides for a substantial increase in monetary penalties . The Central Bank also has the power to suspend or revoke a regulated entity's authorisation following an Inquiry.