The Central Bank has fined Merrion Stockbrokers €200,000 and reprimanded it for failings in its fitness and probity regime.
Merrion has admitted this breach, which was identified during a Central Bank inspection last year.
The Central Bank's investigation found that Merrion failed to introduce adequate systems or controls to ensure that individuals holding "controlled functions" or "pre-approval controlled functions" complied with the fitness and probity standards.
Controlled functions include the giving of advice to a customer of the regulated financial service provider, arranging a financial service for a customer of the regulated financial service provider or assisting a customer in the making of a claim under a contract of insurance.
The most significant of these roles are pre-approval controlled functions ('PCFs') in respect of which Central Bank approval is required before they are appointed.
The Fitness and Probity regime was introduced after the financial crisis to ensure that the right people were working in the financial services sector.
It also ensures that those individuals would be held accountable if their conduct fell below the expected standards.
The Central Bank's Head of Enforcement Investigations, Brenda O'Neill, said that under the Fitness and Probity regime, the bank acts as a gatekeeper for individuals in senior positions at supervised firms.
"Importantly however, it is firms who have the ultimate responsibility for ensuring that the wider population of individuals working in financial services, namely those in controlled functions, are suitable. This is an obligation that firms have when appointing individuals to roles," Ms O'Neill said.
She also said it is an ongoing obligation for firms to ensure individuals continue to meet the standards.
"If circumstances arise to suggest that an individual no longer satisfies the standards, firms must be in a position to identify this and, if necessary, report any such circumstances to the Central Bank. Firms must take these obligations seriously as the risks posed by failing to do so are significant," she added.
