Newsletter 03/2014
New Director of Credit Institutions announced at Central Bank

The Central Bank has announced the appointment of the Registrar of Credit Unions, Sharon Donnery, as the new Director of Credit Institutions. Ms. Donnery, who replaces outgoing Director Fiona Muldoon, took up her new role on 25 March 2014.

Ms. Donnery has worked in the Central Bank since 1996 and has held a number of roles, predominantly in the area of consumer protection before taking up the role of Registrar of Credit Unions.

She takes up the role at an interesting time for the Central Bank in general and banking supervision in particular. Besides the difficulties of managing a large number of supervisory staff, Ms. Donnery must manage the impact and integration of a large number of European initiatives which will transform the way that banking is undertaken and supervised. Besides the politically-contentious Single Resolution Mechanism with attendant stress-test exercises and public capital adequacy exercises, she will have to cope with a fundamental centralisation into Europe of banking supervision under the Single Supervisory Mechanism and the bedding-down of the Fourth Capital Requirements Directive. Add to this the on-going travails of the domestic banking sector and it is clear that Ms. Donnery will have her hands full from the very start. A small positive is that she brings with her an established familiarity with the Credit Union sector, still an area of active regulatory concern and re-structuring.

Compliance Ireland congratulates Ms.Donnery on her new role and wishes her every success in it.

Central Bank News
Consultation Paper 79 on Whistleblower and Mandatory Disclosure Handling

At a very apposite time given broader public debate about the treatment of whistlebowers in An Garda Síochána, the Central Bank published Consultation Paper 79 on 19 March 2014 about the arrangements proposed for its receipt and handling of protected disclosures as introduced under The Central Bank (Supervision and Enforcement) Act 2013 (the “Act”).

Protected disclosures include those made by Pre-Approval Controlled Functions (“PCFs”) under the mandatory reporting obligation set out in Section 38(2) of the Act, which has been effective since 1 August 2013.


Click here for full article



Consultation Paper 80 on CRR Liquidity Coverage Ratio issued

In what is possibly one of the most esoteric and specialist interest Consultation Papers to date, the Central Bank has published on 19 March CP80 on Guidelines on LCR Calculation for the Interim Observation Period.


Click here for full article
Funds News
Consultation Paper 78 on carrying out 'Depositary Lite' duties under AIFMD

On 7 March 2014, the Central Bank published Consultation Paper 78 dealing with carrying out depositary duties in accordance with Article 36 of the AIFMD, colloquially known as 'Depositary Lite'. The Paper clarifies that a fund administrator can provide both administration services and depositary services provided conflicts of interest arising as a result of the provision of both are appropriately mitigated. The Paper proposes a new provision to be inserted in the AIF Rulebook which includes a requirement for the relevant fund administrator to carry out depositary services through a separate subsidiary.


Click here for full article
Enforcement
Yet another Settlement Agreement for breach of Transaction Reporting Requirements

On 4 March 2014, the Central Bank fined Ava Capital Markets Limited €165,000 for breaching the MiFID Regulations for a continued period of nearly 2 years. The breaches related to transaction reporting failures, including failures to ensure that outsourcing arrangements in place did not compromise the firm's ability to comply with its transaction reporting obligations and in turn, the Central Bank's ability to monitor that compliance.This was the sixth Settlement Agreement concerning transaction reporting.


Click here for full article



Settlement Agreement with Unicredit Bank Ireland plc

On 13 March 2014, Unicredit Bank Ireland plc was fined €315,000 for breaches of large exposure requirements set out in the Capital Adequacy of Credit Institutions Regulations 2006 and for failing to have effective processes and adequate internal control mechanisms in place to ensure compliance with these requirements. This is the first settlement agreement of this nature.


Click here for full article
Europe
European Commission publishes draft Regulation on Supplemental Prospectuses
The European Commission has published a draft delegated regulation setting out regulatory technical standards for the publication of supplementary prospectuses. 

Click here to download the draft Regulation


European Commission publishes CRD IV criteria to identify 'material risk takers'
On 4 March 2014, the European Commission published the text of the delegated Regulation setting out RTS on criteria to identify ‘material risk takers’. Material risk takers are staff whose professional activities have a material impact on an institution's risk profile and are subject to CRD IV requirements on variable remuneration, including bonuses. 

Click here for full article
27 March 2014
In This Issue
Central Bank News
Consultation Paper 79 on Whistleblower and Mandatory Disclosure Handling
Consultation Paper 80 on CRR Liquidity Coverage Ratio issued
Funds News
Consultation Paper 78 on carrying out 'Depositary Lite' duties under AIFMD
Enforcement
Yet another Settlement Agreement for breach of Transaction Reporting Requirements
Settlement Agreement with Unicredit Bank Ireland plc
Europe
European Commission publishes draft Regulation on Supplemental Prospectuses
European Commission publishes CRD IV criteria to identify 'material risk takers'
Useful Links
Compliance Ireland
Compliance Ireland
Lower Ground Floor
13 Adelaide Road
Dublin 2

T: +353 1 425 5962
E: email@complianceireland.com
Email Software by Newsweaver