Pearse Doherty (Donegal South West, Sinn Fein)
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272. To ask the Minister for Finance if he will provide an update on the Central Bank of Ireland investigation into Custom House Capital; and if he will make a statement on the matter. [20076/15]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that its enforcement action against persons concerned in the management of Custom House Capital Ltd (in liquidation) commenced after the publication of the Final Report to the High Court by Court Appointed Inspectors dated 19 October 2011.

Upon presentation of the aforementioned Final Inspectors' Report on Custom House Capital Ltd (CHC) to the High Court, 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.

Following consultation with An Garda Siochána, the Central Bank's investigation was deferred in August 2013 pending completion of investigations by An Garda Síochána. The Central Bank is not in a position to comment on investigations undertaken by An Garda Síochána.

The Central Bank provides regular updates on CHC on its website. This can be accessed at:

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 CHC. The principal developments are set out below.

Client Assets Regime

Following consultation with my Department new rules for the Safekeeping of Client Assets were introduced by the Central Bank in SI 104 of 2015 ("Client Asset Regulations 2015 for Investment Firms"). These were signed into law on 25 March 2015 and will come into operation for investment firms on 1 October 2015. 

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 2013also 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 theenforcement 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.