Pearse Doherty (Donegal, Sinn Fein)
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225. To ask the Minister for Finance the public element there is to the ongoing Central Bank inquiry into a building society (details supplied); and if he will make a statement on the matter. [41092/16]

Pearse Doherty (Donegal, Sinn Fein)
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226. To ask the Minister for Finance when the results of the Central Bank inquiry into a building society (details supplied) will be published and the form in which they will be published; and if he will make a statement on the matter. [41093/16]

Pearse Doherty (Donegal, Sinn Fein)
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227. To ask the Minister for Finance the expected cost of the Central Bank inquiry into a building society (details supplied) currently under way; and if he will make a statement on the matter. [41094/16]

Pearse Doherty (Donegal, Sinn Fein)
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228. To ask the Minister for Finance the findings possible for the Central Bank to arrive at, and the penalties on persons it can impose, as a result of the inquiry into a building society (details supplied) currently under way; and if he will make a statement on the matter. [41095/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 225 to 228, inclusive, together.

I am informed by the Central Bank that under Part IIIC of the Central Bank Act 1942 , the Bank may hold an inquiry to determine whether or not a financial service provider is committing or has committed a prescribed contravention.  The Bank may also hold an inquiry to determine whether or not a person concerned in the management of a regulated financial service provider is participating or has participated in the commission of a prescribed contravention by the financial service provider.

Part IIIC of the Act sets out the overall framework for how Administrative Sanctions Procedure (ASP) Inquiries are to be carried out. The Bank has prescribed Inquiry Guidelines in order to set out the general procedure which it ordinarily proposes to follow at an ASP Inquiry (available here:).

While the Inquiry Members decide in each case how an Inquiry will proceed and the procedures to be followed, the Guidelines provide as follows:

Section 3.2"Inquiry hearings (including any Inquiry management meetings) will usually be held in public. An Inquiry hearing may only be held in private (or part in private) in the following circumstances:

- by agreement: the Inquiry and the regulated entity agree that the Inquiry should be held in private (or part in private); or

- by decision of the Inquiry: the Inquiry decides that the Inquiry shall be held in private (or part in private) being satisfied that:

(a) evidence may be given, or a matter may arise during the Inquiry that is of a confidential nature or relates to the commission, or the alleged or suspected commission, of an offence against a law of the State, or

(b) a person's reputation would be unfairly prejudiced."

Section 3.3"A notice will appear on the Central Bank website advising of the time and location of the Inquiry hearing. The public and media will be able to watch and listen to the proceedings in a public gallery located within the Inquiry Room or adjacent to it."

Section 3.4"If the Inquiry hearing or part of the Inquiry hearing is to be held in private a Notice will appear on the Central Bank's website outlining the fact that an Inquiry hearing is commencing which is being held in private, or is being conducted in part in private, unless the Inquiry Members direct otherwise based on the considerations outlined in paragraph 3.2."

Notices are published on the Central Bank website on the details of any impending inquiry hearings.

In relation to publication of findings:

Section 5.20"Generally, the Central Bank's obligations to publish the findings of an Inquiry are set out in section 33BC of the Act. Pursuant to section 33BC of the Act, where the Inquiry Members have found that a regulated entity is committing or has committed a prescribed contravention and/or the Inquiry Members have imposed a sanction, the Central Bank must, subject to paragraph 5.21, publish in such form and manner as it considers appropriate the Inquiry Members' findings and such (if any) of the particulars of the contravention(s) as it thinks appropriate, which will ordinarily include:

(a) the name of the regulated entity on whom a sanction has been imposed;

(b) details of the prescribed contravention(s) in respect of which the sanction has been imposed;

(c) details of the sanction imposed; and

(d) the grounds on which the finding is based."

Section 5.21"Notwithstanding this, the Central Bank is not required to publish a finding or particulars:

if publication of the finding or particulars involves the disclosure of confidential information the disclosure of which is prohibited by the 'Rome Treaty'; the ECSB Statute or the Supervisory Directives (within the meaning of section 33AK(10) of the Act); or

if the Inquiry Members determine:

(i) that the finding or particulars are of a confidential nature or relate to the commission of an offence against a law of the State; or

(ii) that publication of the finding or particulars would unfairly prejudice a person's reputation."

Section 5.23"Separate to the publication of the Inquiry Members' findings, the Central Bank may issue a market commentary on the outcome of the Inquiry, which will outline the Central Bank's view of how the findings in the case apply more broadly to the market at issue."

Section 5.24"The Central Bank will publish annually, in summary form, information on its actions under Part IIIC of the Act, including on the decisions of any Inquiry conducted."

As the Inquiry in question is ongoing, the Central Bank is not commenting at this stage on the publication of the results of the Inquiry nor on costs incurred in relation to the Inquiry.

On the particular issue of the possible penalties or sanctions that may arise from the findings of the Inquiry, the statutory position is as follows.

If an Inquiry makes a finding that a person concerned in the management of a regulated financial service provider is participating or has participated in the commission by the financial service provider of a prescribed contravention, the Central Bank Act 1942 (as amended) under section 33AQ provides that it may impose on the person one or more of the following sanctions:

"(5) a) a caution or reprimand;

b) a direction to pay to the Central Bank a monetary penalty not exceeding the prescribed amount;

c) a direction disqualifying the person from being concerned in the management of a regulated financial service provider for such period as is specified in the order;

d) if the person is found to be still participating in the commission of the contravention, a direction ordering the person to cease participating in the commission of the contravention;

e) a direction to pay to the Central Bank all or a specified part of the costs incurred by that Authority in holding the inquiry and in investigating the matter to which the inquiry relates.

(6) For the purpose of subsection (5)(b), the prescribed amount is-

a) €1,000,000, or

b) if the regulations prescribe some other amount of money for paragraph (a), that other amount."

As the Inquiry in question is ongoing, the Central Bank cannot comment at this stage on the possible findings of the Inquiry.