The Constitutionality Of The Administrative Sanctions Procedure

1 The Draft Inquiry Guidelines and Part IIIC of the Central Bank Act 1942 (As Amended)

1.1 In November 2011, the Central Bank (the "Bank") issued Consultation Paper 57 ("CP 57") on the draft Inquiry Guidelines (the "draft Guidelines") to be prescribed undersection 33BD of the Central Bank Act 1942 (as amended) (the "Act"). The Bank then issued Consultation Paper 65 ("CP 65") on 23 May 2013 having considered the submissions made in respect of CP 57 and undertaken a review of the draft Guidelines.

1.2 Under Part IIIC of the Act (the "Administrative Sanctions Procedure") the Bank can impose sanctions for breaches of regulatory requirements by regulated financial service providers and persons involved in their management. Under this procedure the Bank can, in appropriate cases, convene an inquiry to determine whether or not a prescribed contravention has been or is being committed and determine sanctions. The intention underlying the draft Guidelines is to provide