Michael Fingleton legal bid to halt Central Bank probe opens

Former Irish Nationwide Building Society (INBS) chief executive Michael Fingleton’s legal action, aimed at preventing the Central Bank from conducting an inquiry into alleged regulatory breaches at the financial institution, has opened at the High Court.

Mr Fingleton, along with several other former officials of INBS, are the subject of a Central Bank inquiry, which is due to commence hearings in February.

The Central Bank wants to inquire into allegations certain prescribed contraventions were committed by both INBS and certain persons concerned with its management, between August 2004 and September 2008.

The inquiry, in the event of any finding of wrongdoing, has the power to impose a fine on an individual of up to €500,000.

INBS was nationalised and merged with the former Anglo Irish Bank into IBRC in 2011.

In his proceedings, Mr Fingleton seeks various orders and declarations from the court in respect of the Central Bank’s decision to launch an inquiry which he claims is disproportionate, oppressive and unreasonable.

Mr Fingleton also claims that proceeding with the inquiry is a breach of fair procedures and an unlawful breach of his right to a fair hearing.

Represented by Bill Shipsey, Mr Fingleton argues the Central Bank cannot conduct an inquiry of this nature.

This, it is claimed, is because Mr Fingleton, who retired in 2010, is no longer involved in the management of an entity that was a regulated financial service provider.

The Central Bank, which is opposing the application, says the inquiry should proceed. The action before Mr Justice Seamus Noonan, which is expected to last for a number of days, continues.