Compliance Update: Errors handling
Tue Jan 11 2022
The Central Bank of Ireland indicated towards the end of 2021 via its intermediary times and virtual roadshow, that owing to the limited number of errors being reported by the Retail Intermediaries sector to the Bank in recent years, they are planning to undertake supervisory work in this area in 2022, to ensure firms are handling and reporting on errors in line with the Code requirements.
Firms are reminded that they must have written procedures in place for the effective handling of errors which affect consumers.
All errors should be resolved speedily and no later than six months after the date the error was first discovered.
Where an error which affects consumers has not been fully resolved within 40 business days of the date the error was first discovered, a firm must inform the Central Bank within five business days of that deadline. If the Central Bank identifies that a firm has failed to inform it of an eligible error within the deadline of five business days, this would be a breach of the Code and the firm would be subject to supervisory and / or enforcement action as a result.
All noted errors that have affected consumers must be logged, and a record of all steps taken to resolve the error must be kept. An Error Notification Template is available on the Central Bank’s website, and all related correspondence should be sent to firstname.lastname@example.org.
Further guidance is available in the compliance section of the Brokers Ireland website where an Errors Procedure and Log Template is available.