The Central Bank (Supervision and Enforcement) Act 2013 (the Act”) was enacted on 11 July 2013. The purpose of the Act is to enhance the Central Bank’s regulatory powers and to strengthen the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions.
Throughout the legislative process, the Act was subject to many proposed amendments, particularly at the committee stage. Many of the amendments made were merely technical amendments. Some of the key amendments, however, enhanced the Central Bank’s powers to carry out its regulatory and supervisory functions, and enhanced customer protection.
The Act relates to a number of important areas in the financial services industry including:
- Powers to enable the Financial Service Ombudsman to name financial service providers
- Information gathering powers for the Central Bank
- The introduction of powers to allow the Bank establish customer redress schemes and
- Powers for the Bank to require auditor assurance statements be provided regarding a regulated financial service provider’s compliance with specified regulatory requirements