Central Bank of Ireland Enforcement Action – Gary McCollum, formerly of INBS, fined €200,000 and disqualified for a period of 15 years by the Central Bank for breaches of financial services lawJune 2021
On the 10th of June 2021, the Central Bank reprimanded and fined Mr. McCollum €200,000.00 and disqualified him from being a person concerned in the management of a Central Bank regulated financial service provider for a period of 15 years.
Significant failings regarding commercial lending were identified, these included:
- A failure to ensure that commercial loan applications were processed in accordance with internal policy;
- A failure to ensure that commercial loans and variations were approved in accordance with internal policy and that commercial mortgage offers complied with policy;
- A failure to ensure that security (including personal guarantees) for commercial loans was obtained, that valuation reports were received before all, or part of the loan was advanced and that loan-to-value limits were adhered to in accordance with INBS’s internal policies or otherwise approved as exceptions; and
- A failure to ensure that commercial lending was effectively monitored in accordance with INBS’s internal policies.
The Central Bank noted the seriousness and impact of the contraventions in addition to the failure by Mr. McCollum to notify them that the breaches had occurred and his failure to take remedial action as aggravation factors in the sanctions placed on Mr. McCollum.
The Central Bank’s Director of Enforcement and Anti-Money Laundering, Seána Cunningham, stated:
“The Central Bank has highlighted on many previous occasions the potential risks that may arise for a firm, its customers and the wider financial market, when robust systems of internal control and procedures are not put in place and followed. This case serves to underscore a further fundamental point – robust systems of internal control are only as effective as the individuals implementing them. It falls to senior role holders to lead by example, so that a culture of compliance is the norm.
By: Eilish Larkin - Regulatory Consultant