Members of the so-called Davy 16 group of executives who left the stockbroker after a bond trading scandal could face a “robust challenge” if they seek alternative employment in the financial industry, according to the Central Bank of Ireland.
All senior industry appointments, including executives moving between regulated firms, require Central Bank endorsement.
Approval was not withdrawn from the Davy 16 as they no longer worked for the stockbroker, said Derville Rowland, director-general in financial conduct at the Central Bank, in a written reply to Róisín Shortall, co-leader of the Social Democrats.
Rowland added, however, that the executives could face scrutiny if they sought employment elsewhere within the industry. “Where we have concerns about an individual’s fitness and probity . . . they can expect a robust challenge by the Central Bank, by way of interview in particular,” Rowland said.
Almost 4,500 approvals were sought from the Central Bank last year. Out of 36 applications referred to the regulator’s enforcement division for closer inspection, 20 were subsequently withdrawn, according to Rowland. Rules announced last week by Paschal Donohoe, the finance minister, aim to hold bankers, stockbrokers and other financial executives to account for their actions.
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Under the proposed senior executive accountability regime, the Central Bank can sanction individuals without having to prove wrongdoing by the financial institutions where they work.