Funds body has concerns over Central Bank scheme for regulation
A LOBBY group for Dublin's powerful funds industry has warned that its members have "significant concerns" about new Central Bank proposals for investigating alleged regulatory breaches
The comments from the Irish Funds Industry Association (IFIA) came as advisers Deloitte claimed that the new proposals were to the "detriment" of financial firms because they lacked the "checks and balances" required for fairness.
Solicitors Dillon Eustace have separately told the Central Bank the plans could be at odds "with constitutionally guaranteed principles of natural justice".
The proposals to update the Central Bank's "inquiry guidelines" are the latest measures to enhance financial regulation in post-crisis Ireland.
The process is for a "draft" version of the proposals to be circulated to industry, so firms can make submissions, and the Central Bank will then prepare its final position.
In its submission, the IFIA said a "number" of its members had "significant concerns", adding: "These concerns range from whether the proposed procedures are constitutional, to how costs will be dealt with (particularly in respect of a respondent who has not been found to have committed a prescribed contravention)."
Deloitte criticises the fact that the proposals say the Central Bank will have court-like powers, including the ability to summon witnesses, but "will not be bound by the strict rules of evidence".
The submission goes on to say the Central Bank's rules should require any advice from an independent legal adviser to be given in public and that both parties should be allowed to comment on that advice.