The Central Bank is to investigate whether a person formerly involved in the management of Permanent TSB took part in a suspected breach of the bank’s Consumer Protection Code 2006.

The regulator has said that it has “reasonable grounds to suspect” a potential breach of the code.

The Central Bank reached a settlement with Permanent TSB in 2019 in what it described as a related investigation, arising from the regulator’s examination of how banks dealt with customers who had tracker mortgages.

Permanent TSB was reprimanded and fined €21 million as a result.

The inquiry announced today (10 November) is a statutory mechanism by which the Central Bank can assess suspected breaches, make relevant determinations and, where relevant, impose sanctions.

Barrister appointed

The process will be carried out by the regulator under its Administrative Sanctions Procedure, which is governed by the Central Bank Act 1942.

The bank has appointed barrister Peter Hinchliffe to carry out the probe. He will determine how the Inquiry will proceed, and the procedures that are to be followed.

Mr Hinchliffe sits as a tribunal judge in the General Regulatory Chamber, which handles appeals against decisions made by regulatory bodies in Britain.

Under the framework set out for such investigations, the inquiry member must have had no previous involvement in the subject matter of the Inquiry, or no role in the supervision or authorisation of the financial institution concerned.