The Central Bank is set to spend up to €500,000 (ex VAT) on a new supervisory framework to assess behaviour and culture (B&C) across the Irish financial services sector.
As part of the move, the Central Bank is looking to employ a third party to provide it with consultancy support services to help it develop, design and implement the supervisory framework.
Outlining the background to putting such a framework in place, the Central Bank states in a tender for the works that “root cause analysis of recent financial scandals across the globe have identified the culture in firms as a critical factor in creating the conditions for these incidents to occur”.
The tender states that “these cultures fostered behaviours and decisions which often resulted in detrimental outcomes for consumers and financial stability”.
The Central Bank states that the B&C framework “will be aligned and integrated with the Central Bank’s overarching supervisory framework, reflecting both our conduct and prudential mandates”.
The Central Bank states that the estimated value of the contract for the successful tenderer to provide the consultancy services is €500,000 (ex VAT).
One of the chief objectives of the framework is to drive the financial services sector to develop, embed and review their cultures to deliver outcomes which are prudentially sound and in the best interests of consumers and the wider public.
The integrated supervisory framework also seeks to deepen the expertise and enhance the capability of supervisors to understand, identify and challenge observed behaviours in Regulated Financial Service Providers (RFSP) in order to strengthen the assessment of risks to supervisory objectives.
The tender points out that the Central Bank is responsible for safeguarding financial stability and ensuring that the financial system operates in the best interests of consumers and the wider economy.
The Central Bank supervises approximately 10,000 financial institutions of varying nature, scale and complexity across a number of sectors.
The tender states that the term of the contract is anticipated to be three years, with an option to extend for a period or periods of up to 12 months.
The closing date for tenders is April 30th.