Law Society and Institute of Directors question key strands of plan, saying it could expose ‘good faith actors’ to big risks
The Central Bank set out detailed guidelines in June for a new administrative sanctions procedure for investigations, which will take force later. This could lead to severe penalties, including fines up to €1 million and lifetime work bans.
But as a public consultation on how a sanctions procedure will operate closes this week, two professional groups have set out serious reservations about the plan.Philip Andrews, a member of the Law Society business law committee and an author of its Central Bank submission, said the criminal enforcement regime for white-collar crime has proved challenging for regulators.
Noting how the Central Bank has imposed €400 million in enforcement fines via settlements with 154 companies, he questioned plans to use similar procedures against individuals. The IoD, which represents thousands of directors, said the measures marked a big change, although governance advisor Dr Margaret Cullen stressed it was not challenging Central Bank objectives.