IFSRA consultation on Sanctions Procedure

The Irish Financial Services Regulatory Authority today (30 November 2004) publishes a consultation on its [broken link removed] ...Irish Financial Services Regulatory Authority has a range of powers to enable it to promote compliance with its regulatory requirements. The purpose of this consultation is to seek views from the public, representative bodies and the industry on the Financial Services Regulator's approach and to facilitate the development of an appropriate administrative sanctions policy.

Under the new legislation, the Financial Services Regulator has the power to impose sanctions for breaches of regulatory requirements and to publicise the findings and sanctions imposed. These include disqualification, fines up to EUR5,000,000 in the case of a regulated entity and EUR500,000 in the case of a person.

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The consultation paper is available on the Financial Services Regulator's website - www.ifsra.ie - or by telephoning 01-4104820. The closing date for submissions is 28 February 2005. Comment is invited in respect of all aspects of the proposed policies and procedures and will be carefully considered. It is likely that the Financial Services Regulator will publish guidelines on the Administrative Sanctions Procedure in mid-2005.

Is the intended audience for this consultation paper the general public or finance "professionals"?

Hi Clubman

It says

Comments are welcome from all interested parties

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So I think the public is interested in how financial institutions are regulated.

Brendan

I had a quick look at the consultation document and it looked very technical to me. Can't see many members of the general public making submissions to be honest.

The paper reflects the provisions of the 2004 IFSRA Act.

I will try to prepare a summary of the key issues on which IFSRA is seeking opinions.

Brendan

Here are some areas where IFSRA would welcome the views of the public:

- Sanctions policy, i.e. where can the best use be made of these powers ?
- Administrative Sanctions or Criminal Prosecutions ?
- Penalties policy (proportionality and mitigants) ?
- Written procedure v. Oral hearings
- The requirements of procedural fairness
- The use of publicity to support the scheme
- Forbearance

The AIB report raises a very interesting issue: the interaction of the IFSRA sanctions process and the internal disciplinary process of the company.

Brendan

The AIB report raises a very interesting issue: the interaction of the IFSRA sanctions process and the internal disciplinary process of the company.

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I agree. What do you suppose would happen if the internal process does not result in 'sufficient' penalties being administered by the internal procedures? Would IFRSA take any further action?