One police officer has been suspended and a second officer "re-positioned" following an arrest at a memorial event in Belfast on Friday.
People had gathered to mark the 29th anniversary of a gun attack on the Ormeau Road, in which five people were murdered by loyalists in February 1992.
Mark Sykes, who was shot and injured in the attack on Sean Graham bookmakers shop, was arrested and later released.
PSNI Chief Constable Simon Byrne has apologised for what happened.
In a statement on Saturday night he said: "Having reviewed the Body Worn Video from yesterday's incident on the Ormeau Road a decision has been taken to suspend once officer and re-position a second officer."
The two officers were recent recruits, having joined the PSNI last June.
On Friday, Mr Byrne said "between 30 and 40" people had gathered at the memorial event and a man was approached about the coronavirus regulations.
Public gatherings of more than six people are currently prohibited under Covid-19 lockdown regulations in Northern Ireland.
After his release, Mr Sykes released a statement in which he said he was grabbed and handcuffed after swearing at police.
The Police Ombudsman's Office has already begun an investigation.
The chief constable said his officers "are and continue to fully co-operate" with the Police Ombudsman's investigation.
image captionThe memorial in Belfast's Lower Ormeau to the victims of the gun attack
Mr Byrne said: "It is I think important that people understand that police did not attempt to prevent the commemoration.
"After the commemoration had finished, the officers present became involved in an incident with a man who had been there. What followed was not reflective of the values of the Police Service of Northern Ireland.
"I want to apologise to all those who were present yesterday and to those who have been affected by what they have seen on social media.
"I will be writing to the legal representatives of families who lost loved ones in the 1992 atrocity and offering to meet them in person to listen to their concerns and to apologise."
He added that the PSNI is under "significant scrutiny from all communities" for how it is enforcing the coronavirus regulations.
"Policing during a global pandemic and the enforcement of the health protection regulations is at times drawing us into conflict with the communities we serve," the chief constable said.
"We do not want this and are keen, if we can, to find a way to draw a line under the events of the last week and move forward together with the community."
The PSNI has been criticised for not making any arrests after a group of masked men were filmed walking around Pitt Park, off the Newtownards Road in east Belfast, on Tuesday.
The presence of police, who could be seen monitoring the scene, is thought to have prevented an intended attack on a house.
image captionFive people were killed and several others were injured in the 1992 gun attack
The families of those killed in the 1992 attack said the last 24 hours have been deeply traumatic and stressful.
In a statement issued through Relatives for Justice, the families said they "note the statement of the chief constable" and "will in due course consider and assess this statement in full and respond if necessary".
"This incident is far from having a line drawn under it, not least the status of Mark Sykes' arrest and the potential for charges," it continued.
The Northern Ireland Policing Board said the chief constable's apology was a "welcome first step".
"As a board, we expect the highest professional standards from our officers and a policing approach throughout the service that reflects those standards at all times," said Policing Board Chair Doug Garrett.
"I have clearly conveyed to the chief constable the urgent necessity to repair damage caused to community relations arising from the policing approach on Friday and at a number of other events in recent times."
The BBC is not responsible for the content of external sites.View original tweet on TwitterSpoke to @ChiefConPSNI expressing the real concern within @PoliceServiceNI ranks of how due process re: unfortunate incident on Ormeau Road has been bypassed. Officers involved attended on instruction in respect of #covid legislation and should not be made scapegoats.
— Police Federation for Northern Ireland (@PoliceFedforNI) February 6, 2021
The Police Federation tweeted that it had expressed concern within the ranks of the PSNI to the chief constable over how "due process re: unfortunate incident on Ormeau Road has been bypassed".
The body, which represents officers in Northern Ireland, also said it would give the officers involved legal representation.
DUP members of the Policing Board said they had serious questions for the chief constable.
In a statement, MLAs Joanne Bunting, Trevor Clarke, Tom Buchanan and Mervyn Storey said: "The chief constable needs to explain why two relatively inexperienced officers were despatched to this scene and if any other senior officers were present.
"The PSNI has enough trouble recruiting without a perception that officers have been scapegoated."
The deputy first minister, Sinn Féin's Michelle O'Neill, tweeted that the policing of the commemoration on Friday has caused huge damage to community confidence.
Ms O'Neill said she would be meeting with Simon Byrne on Monday.
The BBC is not responsible for the content of external sites.View original tweet on TwitterThe disgraceful scenes of heavy handed policing of victims & survivors laying flowers in contrast to the failure to police a UVF mob in East Belfast has done huge damage to community confidence in policing. Will meet Chief Const. on Monday to discuss the fall out of these events
— Michelle O’Neill (@moneillsf) February 6, 2021
