2022 saw a rise in regulatory fines from the CBI and the FCA

January 5, 2023

Fines issued by both the Central Bank of Ireland (CBI) and the Financial Conduct Authority (FCA) set a new high in 2022.

For financial service providers regulated by the CBI, the figures throughout the years represent a significant but steady yearly increase over previous years (€66.8m in 2021, €24.5m in 2020, €28.1m in 2019) with 2022 fines issued totaling €213,586,000 to eight organisations. On the other hand, the FCA issued more than twice as many fines last year, from 10 in 2021 to 26 in 2022.

Regulatory Expectations for 2023

Service providers regulated by the FCA should expect enforcement action in 2023 in relation to the implementation of the new Consumer Duty. Firms must show evidence that they are consumer-focused, identifying issues as they arise and highlighting the cause of the problem. It is also expected that there will be a pivotal changes throughout the year as Mark Steward, FCA's executive director of enforcement and market oversight, steps away in quarter two after seven years. This may introduce a new focus and direction in which expectations lie for FCA-regulated providers. 

For financial services regulated by the CBI, individual accountability will take centre stage in 2023, especially with the introduction of the long-awaited Central Bank (Individual Accountability) Bill 2022. The new bill will ensure they are adopting enforcement action where they see serious instances of consumer or investor harm caused by the actions or failings of businesses and individuals, reforming the regime for fitness and probity and individual accountability, the conduct and culture of regulated entities, and ensuring compliance with anti-money laundering and counter-terrorism financing laws.

Each regulatory body has set their standards and made their expectations clear as we gradually get back to business as normal after Covid-19. 

Back

Recent/Related Articles

ViClarity collect 'ERM end-to-end Solution of the Year' award at InsuranceERM's Awards Night

May 09, 2024

On Wednesday 24th April, Donal Lawlor and Sean Devine of ViClarity travelled to London to attend InsuranceERM's 2024 Awards Ceremony. ViClarity was recognised as 'ERM end-to-end Solution of the Year' on the night.

ViClarity wins ERM end-to-end Solution of the Year 2024

February 29, 2024

On Thursday, February 29th, the news broke that ViClarity had been named ‘ERM End-to-end Solution of the Year’ by InsuranceERM. The ViClarity software was recognised for the expansive amount of solutions within the product to help insurers automate key processes.