Brokers warned on accuracy of returns to Central Bank

Some financial brokers are still not aware that they need to submit audited accounts to the Central Bank every year.

The regulator said there is also a need for greater accuracy in the data submitted to it by some intermediaries.

It said it was engaged in follow-up supervisory check-ups with firms where gaps have been identified.

This comes after a thematic review of the annual returns of retail intermediaries carried out by the Central Bank.

The probe found that some firms were failing to revoke their authorisation from the Central Bank to operate even though they were not actively trading.

They were retaining their authorisation for future use.

After being contacted by the Central Bank of Ireland, the firms’ authorisations were put to use or voluntarily revoked, the Bank said in a statement.

The review found that annual return submission levels have risen from 81pc in 2013 to 98pc this year.

But further improvement is needed by some firms in relation to accuracy of data submitted, producing audited accounts, and voluntary revocation when no longer trading, according to the Central Bank of Ireland’s director of consumer protection Gráinne McEvoy.

“Failure to meet reporting obligations for any reason is not acceptable,” she said.

“Further improvement is needed by firms to ensure the accuracy of data submitted,” Ms McEvoy added.

The regulator noted that consumers who used compliant intermediaries should be able to rely on Central Bank of Ireland registers for the most accurate and up-to-date information.

Brokers Ireland welcomed the finding of 98pc compliance in 2020 with the annual return submission requirements of the regulator.

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