The Irish Independent has today reported that the Central Bank has told an Oireachtas committee it wants legislation to stop bankers trying to hide wrongdoing. The regulators want to hold bankers individually responsible for the type of dishonesty that led to the tracker scandal.
According to the report, the new legislation was needed to stop senior managers in financial firms trying to cover up their dishonest actions, claiming the firm acted collectively. The law would set out exactly who is responsible for various duties within a bank, and force them to adhere to certain conduct standards.
Director of Financial Regulation, Policy and Risk Gerry Cross told the Oireachtas Finance Committee there was a need for what he called an individual accountability framework.
Speaking today, Cross said, "We recommended the introduction of an enhanced individual accountability framework, key components of which would apply to all regulated financial services providers."
He added, "The current hurdle of “participation” should be removed such that the Central Bank could hold individuals to account directly for their misconduct under the administrative sanctions procedure, rather than only where they are proven to have participated in a firm’s breach of rules. Removal of the participation requirement is essential to enhancing the accountability of individuals for failing to maintain basic standards of conduct."