BNY Mellon Fund Services (Ireland) DAC fined €10,780,000 and reprimanded by the Central Bank of Ireland for regulatory breaches relating to outsourcingMay 2022
On 22nd March the Central Bank of Ireland (the “CBI”) imposed one of its largest financial penalties to date fining BNY Mellon Fund Services (Ireland) DAC €10.78m for 16 regulatory breaches relating to the outsourcing of its fund administration activities.
An aggravating factor that led to the large fine was BNY Mellon’s failure to remediate these conduct breaches after they were identified ultimately leading to the CBI imposing a higher penalty.
The case highlights the importance of early engagement with the CBI and taking remedial action as soon as possible after the discovery of a breach. At the outset, firms should fully co-operate with the CBI’s investigations and ensure procedures are in place to minimise the likelihood of re-occurrence. Such active engagement should assist in reducing a firm’s exposure to a fine or sanction being imposed by the CBI and limiting any reputational damage caused.
For full details of the case, see RegSol article:Central Bank of Ireland Enforcement Action – BNY Mellon Fund Services (Ireland) DAC fined €10,780,000 and reprimanded for breaches relating to outsourcing