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Former PTSB chief involved in tracker breaches

An inquiry carried out by the Central Bank has found that the former chief executive of the PTSB bank, David Guinane, was involved in regulatory breaches linked to the bank’s treatment of tracker-mortgage holders.

The probe covered the period from 19 January 2009 to April 2010.

The inquiry’s sole member, Peter Hinchcliffe, found that, on the balance of probabilities, Guinane “participated in PTSB’s failure, during the relevant period, to ensure that it acted fairly in the best interests of its customers”.

The inquiry found that PTSB had avoided offering certain customers a return to the tracker mortgage to which they were entitled, unless they queried or complained about the rate they were offered.

‘Mitigating factors’

The sole member said that the finding against Guinane arose “as a result of his failure to consider the implications for customers when signing off on a proposal to adopt that process”.

He also highlighted “mitigating factors” to be taken into account in considerting any sanctions against Guinane for PTSB’s breaches of the rules.

The inquiry stressed that there was no finding of dishonesty against the former bank chief, and that he had been entitled to receive better support from the bank’s parent group Irish Life & Permanent.

“The ultimate responsibility for regulatory compliance in PTSB during the relevant period lay with the board of Irish Life & Permanent Group, of which Mr Guinane was not a member,” the sole member stated.

Sanctions

A hearing is taking place today (29 January), after which the sole member will decide what, if any, sanctions are to be imposed on Guinane.

Under the Central Bank Act 1942, as amended, these potentially include a caution or reprimand, a penalty of up to €500,000, disqualification from a senior financial-services management role, and a direction to pay the inquiry’s costs.

A Central Bank report on the tracker-mortgage issue in 2019 found that almost 40,000 customers across the main banks had been affected, with almost €650 million repaid to customers by the end of 2018.