The Central Bank is investigating whether well-known businessman Philip Lynch breached regulations in relation to shares he purchased in C&C, the maker of Bulmers cider, while he was a director of the company.
The bank is now to ask a legal expert to assess the case
The development follows a €90,000 penalty being imposed on the company by the Central Bank.
This followed a series of breaches of regulations by C&C in relation to the maintenance of a list of individuals with insider information.
Mr Lynch purchased 600,000 shares in C&C, the maker of Bulmers Cider, in October 2008.
The following month the company announced it had recruited four new executives to run C&C all of whom previously held senior positions in UK drinks company Scottish & Newcastle, in an effort to revive the Irish company's fortunes.
The appointment of the new management team resulted in an increase in C&C's share price from just over €1 in October 2008 to almost €3 a year later.
The Central Bank has taken over responsibility for policing insider trading from the Irish Stock Exchange.
The bank has appointed a panel of assessors who can decide if regulations have been breached and if a sanction is appropriate be imposed.
Among the panel are two retired judges, one sitting judge, two senior counsel and one solicitor.
It is understood one of judges are likely to be selected to assess Mr Lynch's purchase of shares.
In a statement earlier this year the Central Bank said it sanctioned C&C in relation to breaches of its insider list requirements between January of 2008 and January 2009.
The list is keeps a record of individuals who are privy to inside information and the extent of their knowledge.
Neither C&C, the Central Bank nor Mr Lynch commented. Mr Lynch has previously denied any wrong doing.
Mr Lynch is a well known businessman who was previously CEO of food group IAWS, now called Aryzta, and founded waste-to-energy group One51.
