Committee on Finance seeking answers on business interruption and senior executives’ accountability
Officials from the Central Bank have been called before the Oireachtas Committee on Finance next Tuesday to address several issues, including this week's €4.13m fine against Davy Group and potential new powers for holding senior financial figures accountable for misconduct.
The committee has invited senior Central Bank executives to give testimony on a range of recent actions taken by the regulator.
It is understood members of the committee will be questioning officials on the Central Bank's handling of mortgage arrears, its framework for business interruption insurance supervision, and proposals for a new senior executive accountability regime (SEAR).
The invitation follows some significant interventions by the Central Bank's enforcement division in recent weeks.
On Tuesday, the CBI announced a record fine against Davy for conflict of interest violations in relation to a bond transaction in 2014.
Two weeks ago, the regulator issued risk mitigation programmes ordering insurance companies to pay business interruption claims in line with last month's Commercial Court ruling against FBD.
Committee members are also expected to scrutinise the Central Bank's proposals for enhanced powers under SEAR.
Under current rules, senior individuals in financial firms can only be held personally accountable for wrongdoing if their misconduct is linked to a breach by their firm.
The SEAR proposals would make it easier for regulators to take action against senior executives based exclusively on their own conduct.
Legal and compliance sources say the Central Bank's low number of enforcement actions against individuals is due to the current high bar.
The Central Bank has made the case for several years that its regulators need a stronger toolkit to enhance their effectiveness.