Central Bank Regulatory Powers

General Regulations

The Bank may make regulations for the proper and effective regulation of regulated financial services provided.  It may require procedures to be adopted in identifying, monitoring, reporting on  risks to which they are exposed, including

their management and minimisation;

  • provision regarding administrative accounting, auditing and reporting arrangements of regulated financial providers;
  • provision for monitoring and recording by providers of training and qualification of their officers, employees, and intermediaries;
  • provision about the resources to be required, procedures, systems, checks, compliance obligations, assurance, provision for securing that they do not prejudice access to banking and financial services.
  • provision specifying information to be given to consumers including  marketing and advertising, promotional material, mandatory giving of information, identification of risks, warnings regarding volatility and risks,
  • giving information regarding incentives, including the disadvantage and advantages of the incentive, duration, and  cost
  • making of comparisons between financial service providers
  • identifying other commitments and obligations arising from the product,
  • giving of information regarding costs and charges.
  • customer statements.
  • recommendations and endorsements.

Consumer Requirements Regulations

Provision may be made for the restriction of unsolicited phone calls or visits. Provisions may be made requiring financial service providers to seek and take account of information regarding

  • customer’s knowledge,
  • understanding,
  • experience in relation to financial services,
  • suitability having regard to such personal circumstances,
  • requirements in relevant circumstances.
  • provisions relating to determining the suitability of financial services for customers.

There may be

  • provisions for the management of conflict of interests may arise between consumers and financial institutions and their financial service providers and their officers, employees, agents, and intermediaries.
  • provisions of standards to be met by financial service providers in the execution of customer orders
  • provisions in relation to making loans and credit facilities available including provision in relation to unsolicited facilities

Regulations Re Credit

Regulations may be made

  • specifying processes in relation to assessing applications for loan or credit
  • setting out circumstances in which a security or guarantee may be required
  • requiring the giving of notices of persons giving security or guarantees
  • specifying processes by which loans or credit may be declined, including giving explanations and specifying conditions on which credit may be available.
  • prohibiting financial service be independent on the provision of another product.

Regulation may be made regarding making of loans or credit facilities to a restricted person, including restrictions on the terms under which loans may be made, varied or managed.  In relation to such persons, there may be specified systems to be adopted in relation to such loans specifying circumstances in which Central Bank approval is required for such loans or requiring reporting of loans made to such persons.

Regulations Re-Insurance

Regulation may be made for

  • giving reasons for refusals of quotations for insurance cover,
  • giving notification in relation to decisions on claims under policies and insurance contracts and works done thereunder and
  • giving information in relation to appeals provision procedures.

Provision may be made requiring statements of account by financial service providers to their customers including, the form frequency and manner in which statements are to be given.

Regulations re Dispute Resolution

Provision for simple and inexpensive resolution procedures for disputes between financial service providers and customers for securing that customers’ complaints are dealt with speedily, efficiently and fairly. The provisions may be made in respect of

  • the first point of complaint,
  • recording of complaints timescales,
  • remedies and redresses,
  • keeping or retention of complaint records.

Provisions may be made in relation to the transfer of the business of financial service providers or mergers and acquisitions.

Various Regulatory Requirements

Provision may be made about the standards to be met and procedures and checks to be followed by financial service providers in dealing with withholding assets and monies of customers, including safeguarding of rights in the event of insolvency, use to which  such assets may be put and management of accounts.

Provision may be made requiring financial service providers to facilitate switching of business to other financial providers.

Provision on how regulated financial services providers are to deal with customers in financial difficulty, including considerations to be taken into account in dealing with them, information to be provided and resolution processes to be adopted.

Provision for the processes and procedures to be adopted in relation to the processing of rebates and refunds due to customers. Provisions for the way in which errors are to be corrected.

Provisions may be made in relation to  financial service providers’ deterioration in specified financial circumstances .

Provision may be made for service providers to provide and keep such records as may be required for effective management and regulation, including the manner in which they are kept  verification, permission for access and other provisions as may be specified.

Regulations in relation to restricted persons may specify a person as restricted if he holds a certain type of office or position, provides services in relation to a financial service provider, or  other circumstances including being connected as may be provided.

There is a procedure in relation to making of regulations which requires consultation by the Bank with other Ministers.