Written answers
Wednesday, 27 May 2015
Department of Finance
Central Bank of Ireland Investigations
Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
55. To ask the Minister for Finance the total fines imposed by the Central Bank of Ireland on financial institutions since 2011; and if he will provide details of each fine. [20895/15]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source
Part IIIC of the Central Bank Act 1942, as amended, provides the Central Bank of Ireland with the power to impose sanctions in respect of the commission of a prescribed contravention by regulated financial service providers and by persons concerned in the management of a regulated financial service provider.
Since the commencement of the Central Bank (Supervision and Enforcement) Act 2013, the Central Bank may impose a monetary penalty upon a body corporate or an unincorporated body of the greater of €10,000,000 or an amount equal to 10 per cent of the turnover of a firm. In relation to breaches that arose prior to the commencement of the 2013 Act, the maximum penalty that the Central Bank could impose on a firm was €5,000,000. The 2013 Act also allowed for the doubling of the maximum administrative sanction to €1,000,000 for a natural person.
The Central Bank's Strategic Plan 2013 - 2015 sets out a strategy of assertive risk-based supervision underpinned by a credible threat of enforcement. Enforcement is an important tool to effect deterrence, achieve compliance and promote positive behaviour. The Central Bank will take enforcement action against regulated entities under its Probability Risk and Impact SysteM (PRISM) supervisory model.
I have been informed by the Central Bank that since 2011 a total of €27,168,565 in fines has been imposed. A total of 54 cases have been taken during this period in which fines were imposed. Details of each case are available on the Central Bank website. The Central Bank has provided my Department with the below summary table.
| 2011 | - |
|---|---|
| Settlements | 9 |
| Monetary Sanctions | €5,050,000 |
| No. | Case | Issue | Monetary Sanctions | Date of Publication |
|---|---|---|---|---|
| 1 | Regulation 16 of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 and section 10 of the Central Bank Act 1971 | €600,000 | 02/06/2011 | |
| 2 | Breaches of regulatory requirements contained in the Consumer Protection Code - This case involved the application of interest to credit card accounts in error resulting in customers being overcharged a total of €16,997,321.49. All affected customers were remediated by the Firm with appropriate interest | €750,000 | 21/06/2011 | |
| 3 | Breaches of regulatory requirements contained in the Client Asset Requirements | €30,000 | 20/07/2011 | |
| 4 | Regulations 76 and 94 of the European Communities (Markets in Financial Instruments) Regulations 2007 | €40,000 | 25/08/2011 | |
| 5 | Regulation 16(3) of the European Communities (Licensing and Supervision of Credit Institutions) Regulations | €160,000 | 08/09/2011 | |
| 6 | Consumer Protection Code and the Handbook for Authorised Advisors - This case involved, inter alia, issues regarding the application of charges to rebate amounts due to customers and the application of fees in excess of the maximum fees advised on the Firm's Terms of Business document. Refunds with appropriate interest were made to all affected customers. | €10,000 | 24/10/2011 | |
| 7 | Regulations 112 and 33(1)(a) of the European Communities (Markets in Financial Instruments) Regulations 2007 | €50,000 | 08/12/2011 | |
| 8 | Regulations 112 and 33(1)(a) of the European Communities (Markets in Financial Instruments) Regulations 2007 | €60,000 | 13/12/2011 | |
| 9 | Various breaches of the Consumer Protection Code (2006) - This case involved, inter alia, issues regarding the suitability of products sold to customers, the behaviour of tied agents and contingency selling. A substantial remediation programme was put in place that refunded an estimated €2,150,744 in respect of approximately 7,917 policies | €3,350,000 | 16/12/2011 |
| 2012 | - |
|---|---|
| Settlements | 16 |
| Monetary Sanctions | €8,492,900 |
| No | Case | Issue | Monetary Sanctions | Date of Publication |
|---|---|---|---|---|
| 1 | Consumer Protection Code of 1 August 2006 | €245,000 | 07/03/2012 | |
| 2 | Consumer Protection Code of 1 August 2006 | €245,000 | 09/03/2012 | |
| 3 | Regulations 112 and 33(1)(a) of the European Communities (Markets in Financial Instruments) Regulations 2007 | €65,000 | 21/03/2012 | |
| 4 | Section 24(1) of the Insurance Act 1989 (as amended) | €25,000 | 27/03/2012 | |
| 5 | Various breaches of the Insurance Act 1989, as amended ("the Act") and the European Communities (Life Assurance) Framework Regulations 1994, as amended | €3,200,000 | 29/03/2012 | |
| 6 | UBS Life Limited | Various breaches of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 | €65,000 | 19/06/2012 |
| 7 | Section 31(3) of the Asset Covered Securities Act 2001 (as amended) and Regulation 16 of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (as amended) | €120,000 | 02/10/2012 | |
| 8 | The Consumer Protection Code (2006)(the "Code") and the Minimum Competency Requirements (July 2006) | €65,000 | 24/10/2012 | |
| 9 | European Communities (Insurance Mediation) Regulations 2005 (as amended) | €800 | 24/10/2012 | |
| 10 | European Communities (Insurance Mediation) Regulations 2005 (as amended) | €1,100 | 25/10/2012 | |
| 11 | Requirements for the Management of Liquidity Risk (June 2009) and the European Communities (Capital Adequacy of Credit Institutions) Regulations 2006 | €1,960,000 | 14/11/2012 | |
| 12 | 2009 Market Abuse Rules | €10,000 | 21/11/2012 | |
| 13 | Regulation 13(1) of the Market Abuse Regulations 2005 | €20,000 | 12/12/2012 | |
| 14 | Various breaches of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 | €21,000 | 13/12/2012 | |
| 15 | Regulation 10(3) of the European Communities (Life Assurance) Framework Regulations 1994 | €1,225,000 | 17/12/2012 | |
| 16 | Regulation 10(3) of the European Communities (Life Assurance) Framework Regulations 1994 | €1,225,000 | 17/12/2012 |
| 2013 | - |
|---|---|
| Settlements | 16 |
| Monetary Sanctions | €6,348,215 |
| No | Case | Issue | Monetary Sanctions | Date of Publication |
|---|---|---|---|---|
| 1 | Breaches of the Handbook for Authorised Advisors and the Consumer Protection Code (2006) - This case involved breaches related to the failure to transfer premium rebates, the deduction of fees from premium rebates and the failure to ensure the repayment of premium overpayments. All affected customers were repaid by the Firm with interest. | €65,000 | 22/01/2013 | |
| 2 | Breaches of the insider list requirements of the Market Abuse (Directive 2003/6/EC) Regulations 2005 (as amended) and the Market Abuse Rules issued by the Central Bank in February 2006 and September 2008 | €90,000 | 01/02/2013 | |
| 3 | Breaches of article 10(3) and article 13(1)(b) of the European Communities (Non-Life Insurance) Framework Regulations 1994, as amended | €5,000,000* | 18/02/2013 | |
| 4 | Breach of the European Communities (Insurance Mediation) Regulations 2005 (as amended) | €1,100 | 06/03/2013 | |
| 5 | Breaches of Regulations 112 and 33(1)(a) of the European Communities (Markets in Financial Instruments) Regulations 2007 | €78,000 | 25/06/2013 | |
| 6 | Breaches of regulatory requirements contained in the Consumer Protection Code | €12,000 | 10/09/2013 | |
| 7 | Breach of the Consumer Protection Code for Licensed Moneylenders | €8,000 | 18/09/2013 | |
| 8 | Breaches of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 | €50,000 | 08/10/2013 | |
| 9 | Breach of the European Communities (Insurance Mediation) Regulations 2005 | €420 | 22/11/2013 | |
| 10 | Breach of the European Communities (Insurance Mediation) Regulations 2005. | €1,000 | 22/11/2013 | |
| 11 | Breach of the European Communities (Insurance Mediation) Regulations 2005 | €520 | 22/11/2013 | |
| 12 | Breach of the European Communities (Insurance Mediation) Regulations 2005 | €650 | 22/11/2013 | |
| 13 | Breach of the European Communities (Insurance Mediation) Regulations 2005 | €525 | 22/11/2013 | |
| 14 | Breach of the European Communities (Insurance Mediation) Regulations 2005 | €1,000 | 22/11/2013 | |
| 15 | Contraventions of the Central Bank's Requirements for the Management of Liquidity Risk and the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. 395 of 1992) | €550,000 | 11/12/2013 | |
| 16 | Contraventions of the Central Bank's Requirements for the Management of Liquidity Risk and the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. 395 of 1992) | €490,000 | 17/12/2013 |
*In relation to the Quinn Insurance Limited case, the Central Bank considered that the contraventions committed by the firm merited the maximum monetary penalty that can be levied by the Central Bank on a regulated financial services provider, namely €5 million in this case. However, the firm was under administration and was entirely reliant on funding from the Insurance Compensation Fund. In these wholly exceptional circumstances, the Central Bank decided to waive the monetary penalty in its entirety in the public interest.
| 2014 | - |
|---|---|
| Settlements | 11 |
| Monetary Sanctions | €5,422,450 |
| No | Case | Issue | Monetary Sanctions | Date of Publication |
|---|---|---|---|---|
| 1 | Provident Personal Credit Limited trading as Provident | Breaches of Section 99 of the Consumer Credit Act, 1995 in relation to the provision of "top-up" loans being used to pay off previous loans. | €105,000 | 01/12/2014 |
| 2 | Ulster Bank Ireland Limited | Breach of Regulation 16 of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. No. 395 of 1992) | €3,500,000 | 12/11/2014 |
| 3 | Failure to hold the required level of PII cover under Regulation 17 of the IMR. | €900 | 17/10/2014 | |
| 4 | E. Tarrant & Sons (Car Sales) Limited | Failure to hold the required level of PII cover under Regulation 17 of the IMR. | €910 | 16/10/2014 |
| 5 | Bank of Montreal Ireland plc | Breach of Credit Institutions) Regulations 2006 (S.I. 661/2006) (as amended) (the "2006 Regulations") and of the European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. 395/1992) (the "1992 Regulations"). | €650,000 | 29/05/2014 |
| 6 | Squared Financial Services Limited | Breach of the European Communities (Capital Adequacy of Credit Institutions) Regulations 2006 (S.I. 661 of 2006) (the "Capital Adequacy Regulations") and the European Communities (Markets in Financial Instruments) Regulations 2007 (S.I. 60 of 2007) (the "MiFID Regulations"). | €100,000 | 21/05/2014 |
| 7 | FBD Insurance plc | Breaches of regulatory requirements contained in the Consumer Protection Code 2006. | €490,000 | 08/05/2014 |
| 8 | LGT Capital Partners (Ireland) Limited | Breach of Regulation 16 & 18 of the EC (Capital Adequacy of Investment Firms) Regulations 2006 & Regulation 33 (1)(f) of EC (Markets in Financial Instruments) Regulations 2007 | €95,000 | 31/03/2014 |
| 9 | Anthony Henneberry t/a Anthony Henneberry Financial Services | Contravention of Regulation 17(1) of the European Communities (Insurance Mediation) Regulations 2005 (IMR) | €640 | 14/03/2014 |
| 10 | UniCredit Bank Ireland plc | Breaches of the Large Exposure rules contained in the Capital Requirements Directive (CRD 2006/48/EC as amended). | €315,000 | 13/03/2014 |
| 11 | Ava Capital Markets Limited | Breach of Regulation 112 of Markets in Financial Instruments Regulations 2007 (MiFID) - transaction reporting requirements | €165,000 | 06/03/2014 |
| 2015 | - |
|---|---|
| Settlements | 2 |
| Monetary Sanctions | €1,855,000 |
| No | Case | Issue | Monetary Sanctions | Date of Publication |
|---|---|---|---|---|
| 1 | Mr Tadgh Gunnell (PCM Bloxham Stockbrokers) | Breach of Regulation 9 & 16 of the EC (Capital Adequacy of Investment Firms)Regulations SI 660 of 2006 in failing to maintain minimum regulatory capital. Failure to submit correct information in the COREPs and FINREPS. | €105,000** | 21/05/2015 |
| 2 | Western Union Payment Services Ireland Limited | Breaches of Section 54 (1) and (2) of the Criminal Justice Act 2010 (6 separate contraventions in relation to failures to have robust policies and procedures with respect to a) Outsourcing, b) CDD record retention, c) IT Systems to monitor and identify suspicious activity and d) Training on AML/CTF). Breach of Section 54 (6) of the Criminal Justice Act 2010 (initial and follow on training of agents) and Breach of Section 55 of the Criminal Justice Act 2010 (Failure to retain copies of documents used to verify identity). | €1,750,000 | 19/05/2015 |
**In relation to the Mr Tadgh Gunnell case, the Central Bank considered that the actions of Mr Gunnell also merited a monetary penalty of €105,000.00 being imposed on him. However on the basis that Mr Gunnell was adjudicated bankrupt by the High Court on 26 January 2015, this monetary penalty was waived.
No comments