Settlement Agreements Central Bank

The transaction agreement is a signed written document, legally binding for the central bank and the regulated entity. As a general rule, a transaction agreement provides that the Central Bank Act of 1942 (as amended) and securities markets allow regulated financial service providers and those who are currently working in their management to enter into a transaction with the central bank. The central bank`s policy is to promote the option of early resolution, but it must ensure that the basis of a settlement taking into account all relevant facts is appropriate. These include the definition of the corresponding sanctions, the question of whether all concerns have been raised to the satisfaction of the Central Bank and other relevant considerations. The extent of cooperation between the entity or person subject to prudential supervision and the Central BANK during an investigation will also be relevant to the settlement. All colonies are voluntary. A few frequently asked questions to regulated businesses and individuals are presented below for the settlement procedure: before the resolution meeting, the regulated financial unit/person is informed in writing of the sanctions requested by the central bank (p.B. grievance, disqualification, amount of fine, etc.). A conciliation meeting was agreed between the central bank and the regulated entity/entity to discuss the resolution. This meeting takes place in a location organized by the Central Bank and can normally last up to one day.

At any stage, a regulated entity or person who has received a letter of inquiry may write to the central bank requesting settlement negotiations to try to remedy the alleged violations. In appropriate cases, the central bank will issue a letter of comparison to the regulated financial entity/entity in response to a request to open the resolution process. In this case, the company did not ensure that all client asset accounts were opened with third parties in accordance with the customer`s requirements. The firm did not set the title of all client asset accounts in an appropriate manner to make it clear that the accounts held over-subordinated assets. The firm has also not received the necessary confirmations from banks, brokers and custodians, which confirm in particular how clients` assets are held. The Central Bank does not conduct lengthy settlement negotiations.