The Central Bank says its targeted inspection of financial intermediaries that were not compliant with reporting requirements has resulted in the majority of firms either becoming compliant or their authorisations being revoked. The inspection consisted of intensive engagement with 325 retail intermediaries that had failed to submit annual returns, including unannounced on-site visits to 127 firms, spanning 23 counties, over a 14-week period.

Of the 325 firms checked, 134 firms have since sought revocation of their authorisations and 171 firms are now meeting reporting obligations. The bank says that “further supervisory powers will be utilised in relation to the remaining 20 firms”.

Bernard Sheridan, the CBI's director of consumer protection, commented: “The Central Bank has a strong consumer protection framework in place to ensure that customers of retail intermediaries are protected. Although many of these firms are small and are categorised as low impact under the bank’s risk assessment framework, we have a clear and tailored strategy in place for these firms which includes the analysis of annual online returns and regular thematic inspections of the sector.

“While this targeted approach may be resource intensive, it has resulted in increased overall compliance in the retail intermediary sector, with 92% now meeting reporting obligations, which will enable us to supervise them effectively.”

Supervisory Tool

Since 2011 retail financial intermediaries are required to submit an annual online return to the Central Bank. This supervisory tool which uses automatic alerts to identify key risk indicators, such as when a retail intermediary fails key financial health checks or fails to have the correct level of professional indemnity insurance in place. But it works only when returns are filed, and non-compliance can often be a sign of wider issues with possible negative impact on consumers.

In Association with

The Central Bank supervises over 2,600 retail intermediaries, the vast majority of which were complying with their obligations. Disqualifying 134 non-compliers will obviously aid consumers by reducing the risks involved in dealing with financial intermediaries.