What are the key changes?
Under Part IIIC of the Central Bank Act 1942 (as amended), the
Central Bank can investigate any matter where it has a concern that
a prescribed contravention has been or is being committed. Where
there are reasonable grounds for such a concern, an Inquiry may be
held. The Inquiry will be a formal process with a formally
appointed panel that will follow rules of due process and decide if
the prescribed contravention has occurred and determine the
appropriate sanctions.
A person or firm who is the subject of an Inquiry may resolve
the matter at any time prior to a decision being reached by
entering into a settlement agreement with the Central Bank. The new
Inquiry Guidelines set out specific discounts whereby up to 30%
discount may be applied if a settlement is reached in the first
stage of the Inquiry and a maximum 10% discount can be applied
where a settlement is reached in the second stage.
