Central Bank rebukes stockbroking and investment firms

The Central Bank has effectively told the boards of stockbroking and investment firms to get their act together after a review showed the industry was falling short of identifying potentially catastrophic risks.

The letter, which was sent to all investment and stockbrokers and firms that supply services to the funds industry, strikes a legal note by saying it was “without prejudice to any future guidance that the Central Bank may issue in relation to risk management”.

The onsite review which was undertaken by its Markets Supervision Directorate was one of what the Central Bank calls its “themed inspections” of firms it regulates. It involved reviewing a sample of firms.