Introduction to Enforcement

A successful regulatory model is composed of a number of interlocking components, namely regulation (the rules), on-going supervision and enforcement. All components must interact with each other to ensure effective financial system governance.

  • Regulation: Legislative Rules, Codes, Standards Underpinning Supervision and Enforcement
  • Supervision: Risk-Based, Assertive Inspection and Supervision of Regulated Entities
  • Enforcement: Gatekeeping, Investigation and Enforcement Regime and Administrative Sanctions

The Central Bank operates an assertive risk based approach to supervision which is supported by a credible threat of enforcement. The Central Bank’s enforcement strategy is aimed at promoting principled and ethical behaviour in regulated entities and those that work in such entities. The Central Bank will take appropriate action where regulated entities and/or individuals fall short of those expected standards of behaviour.

The Enforcement division liaises closely with the Central Bank’s supervisory divisions and advises on appropriate outcomes such as consumer redress schemes and takes necessary measures, including enforcement action, where required.

The Enforcement division consists of several multi-disciplinary teams and adopts an intrusive approach to investigations, placing an emphasis on pursuing individual accountability, routinely undertaking data mining and conducting forensic interviews as part of the investigative process.

Enforcement deals with issues identified, amongst other things, during the normal course of work undertaken by a supervisory division or as a result of an on-site inspection at a regulated firm or a themed inspection across a particular sector.

Single Supervisory Mechanism (SSM)

Since 4 November 2014, the European Central Bank (the “ECB”) has directly supervised significant credit institutions within Ireland. As a result, the ECB can take direct enforcement and sanctions proceedings against significant institutions. The ECB can also instruct the Central Bank to use its supervisory powers or to open proceedings against significant institutions operating in Ireland.

The ECB publishes on its website a report on sanctioning activity across the SSM which is based on the collation of data on sanctioning activity from the national competent authorities of participating member states. Please view link to the ECB’s most recent report on sanctioning activity which is the ECB’s 2024 report on SSM sanctioning activity as well as link to the ECB's 2020, 2021, 2022, and 2023 reports on SSM sanctioning activity.

Enforcement Tools

Enforcement uses a wide range of tools to take action against regulated entities and/or individuals which fall short of our expected standards of behaviour including:

Enforcement Outcomes

Funds collected from monetary penalties imposed under the Central Bank’s Administrative Sanctions regime are included in the Central Bank’s surplus income which is payable directly to the Exchequer.

In accordance with the Central Bank’s principles of working with integrity and transparency, public statements are issued at the conclusion of enforcement actions. These statements also serve to inform and advise the financial sector and consumers of expected standards and behaviours. 

The public notices regarding Enforcement Actions (concluded pursuant to Part IIIC of the Central Bank Act 1942) can be found on our Public Statements page.

Disqualification Notices, Suspension Notices and Prohibition Notices can be found on the Prohibition Notices page.

Read Central Bank’s Data Privacy Notice.

Enforcement also works with supervisory divisions and regulated entities to put in place redress schemes to compensate consumers for loss suffered as a result of the actions of such entities. 

From 2006 to 2014, the Central Bank took a variety of enforcement actions, resulting in sanctions imposed on both firms and individuals for conduct including the following:

  • Failure to put resources and procedures, systems and operational controls in place to comply with authorisation requirements.
  • Failure to “Know the Customer” as required by the Consumer Protection Code by gathering and recording sufficient information about customers’ financial situations and objectives before providing financial services.
  • Failure to refund monies due to customers.
  • Failure to provide Terms of Business and Statements of Suitability to customers before providing financial services.
  • Failure to explain the terms and conditions of financial products provided to clients.
  • Failure to hold satisfactory professional indemnity insurance.
  • Failure to make accurate reports, to provide complete and accurate information when applying for authorisation to the Central Bank.
  • Failure to comply with the requirements of the Insurance Acts and Regulations.
  • Failure to comply with the disclosure requirements of the Market Abuse Regulations. Permitting unauthorised business to be transacted through an authorised firm.

The sanctions included the imposition of reprimands, periods of disqualification for individuals, and fines, taking account of the seriousness of the breaches and conduct, the number of customers affected, and the level of cooperation by firms and individuals with the Central Bank. While details of certain historical cases are no longer published by the Central Bank the outcomes/sanctions remain a part of the regulatory history of the firms/ individuals concerned. Our approach to enforcement is and will continue to be based on key concepts including proportionality; targeted deployment of the appropriate powers; and rigorous focus on effective regulatory outcomes.

See also: