Central Bank of Ireland Annual Performance Statement 2014 and Planned Activities for 2015
The Central Bank of Ireland (CBI) must prepare an Annual Performance Statement on its financial regulatory activities undertaken for the previous year and its planned activities for the upcoming year within four months after the end of each financial year.
The CBI recently published its report for 2014 and its planned activities for 2015. It re-iterated that its priorities are safeguarding stability, protecting consumers and that in fulfilling that mandate, it authorises, supervises, regulates and enforces against regulated financial entities. We have summarised the elements of this report which relate to the investment management industry:
- The CBI believes that its increased supervision of investment firms and fund service providers improved the culture and compliance of these firms, particularly in the area of corporate governance. Its programme of themed supervisory inspections highlighted a range of compliance issues in areas such as outsourcing, quality of regulatory reporting and conduct of business.
- Following the introduction of the new regime for alternative investment fund managers (AIFMs) on 22 July 2014, the CBI authorised 72 AIFMs by the end of 2014.
- The volume of fund authorisations and prospectus approvals was significant. The CBI stated that it had maintained its usual ‘high levels of scrutiny of these applications whilst delivering predictable turnaround times in line with announced service standards’.
- The CBI continued its programme of process re-engineering and automation designed to improve the efficiency and cost effectiveness of key supervisory processes particularly in the area of MiFID and funds authorisations.
- The CBI continued to build its profile internationally and its engagement with the financial services industry, including:
- Enhancing its engagement with the European Supervisory Authorities and the International Organisation of Securities Commissions (IOSCO)
- Playing a leading role in the EU in the development of the European rulebook for UCITS and non-UCITS funds and in bringing greater regulatory convergence at a European level.
- Contributing to international discussions on shadow banking, in particular, through its participation in the European Systemic Risk Board’s expert group and task force on the subject.
- As part of its aim to affect deterrence, achieve compliance and promote the behaviours expected, the CBI took targeted enforcement action against firms across all impact categories, and imposed fines ranging from €640 to €3.5million, totalling €5.42 million in 2014.
- The CBI reviewed its AML/CFT supervisory strategy in 2014, while also providing supervisory input into domestic and international AML/CFT policy developments. This included assistance to the Department of Finance in relation to the proposed fourth EU AML Directive. The CBI plans to conduct AML inspections during 2015 and will continue to conduct AML/CFT risk evaluations. It plans to use information collated from these engagements to further refine its evaluation of AML/CFT risks posed in individual firms and across the various financial sectors.
The CBI produced some tables of statistics regarding its regulated financial services providers. The elements which relate to the investment management industry are available to download.