Central Bank concludes public consultation on enhanced Administrative Sanctions Procedure

• Consultation on Administrative Sanctions Procedure (ASP) has concluded
• ASP Guidelines consolidate and update the ASP
• The ASP Guidelines come into force today, 13 December 2023

Following a twelve-week public consultation, the Central Bank has published a Feedback Statement and consolidated Guidelines relating to the enhanced Administrative Sanctions Procedure. The ASP is the Central Bank’s primary tool for carrying out investigations and inquiries, and imposing administrative sanctions if it determines that firms or individuals that it supervises have breached financial services legislation.

The ASP Consultation set out the Central Bank’s proposed approach to important changes introduced directly by the Central Bank (Individual Accountability Framework) Act 2023 (the IAF Act) , and additional changes to reflect the Central Bank’s experience of using the ASP for over a decade.

While much of the ASP remains the same, the IAF Act changed the ASP in several ways. In some circumstances, the Central Bank can now take direct enforcement actions against individuals, and where a settlement is agreed and is based on admissions, a High Court order is required to confirm the sanctions imposed. Other practical changes include allowing for earlier disclosure of documents to subjects of investigations; and the Central Bank has now published the methodologies for determining monetary penalties.

The ASP Consultation was launched on 22 June and concluded on 14 September 2023. The Feedback Statement responds to submissions from stakeholders, describes changes made to the Central Bank’s approach to the ASP in response to those submissions, and announces the publication of the final ASP Guidelines, which come into force today.

Director of Enforcement and Anti-Money Laundering, Seána Cunningham said “The Central Bank takes a holistic approach to how we assess the most appropriate regulatory response in any given situation. Before we take enforcement actions, we first consider how our regulatory objectives could be met in other ways, such as using our supervisory powers or supervisory interventions.

“Enforcement actions are taken with the stability and integrity of the financial system in mind – our actions are targeted and proportionate. Our new ASP Guidelines provide enhanced transparency and clarity on what the subjects of enforcement actions can expect throughout the process.”

In relation to the ASP Consultation, Director Cunningham added “We are appreciative of the level of constructive engagement from industry and other stakeholders, as well as the number of submissions received. We have listened to the concerns and practical challenges raised by stakeholders, from the perspective of individuals as well as firms, and have amended various parts of the ASP Guidelines accordingly.

“The fundamental principles of fairness and proportionality inform all aspects of our approach to the ASP. The Central Bank takes its duties in this regard very seriously in the discharge of our financial regulation mandate. The Central Bank will remain open and engaged with respect to its ASP Guidelines, and will keep these under review as the operation of the ASP evolves over time.”

ENDS

Notes to editors

• The full Consultation Paper 154, Feedback Statement, ASP Guidelines and Transitional Arrangements can be found on the Central Bank website.
• The enhanced ASP Guidelines have come into force today, Wednesday 13 December 2023.
• The Central Bank (Individual Accountability Framework) Act 2023 introduces a number of important changes to enhance the Central Bank’s Administrative Sanctions Procedure under Part IIIC of the 1942 Act. These changes will apply, subject to the transitional arrangements, to the enforcement of any obligations under the ASP whether those matters are related to existing obligations under financial services legislation, new obligations introduced as part of the Individual Accountability Framework or otherwise become subject to the ASP.
• While the overall structure of the ASP remains largely unchanged, various procedural amendments to the ASP have been made to incorporate additional safeguards to further fortify the Central Bank’s existing process and in recognition of the expanded population of individuals coming within the scope of the ASP under the IAF Act.