15th October 2024
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Fitness & Probity

  New Fitness & Probity Rules
 
  • The Central Bank Reform Act 2010 (Sections 20 and 22) Regulations 2011 (the Regulations) have been enacted and the Central Bank has introduced its Fitness and Probity Standards (the Standards) under section 50 of the Central Bank Reform Act 2010 (the Act).
  • The Regulations clarify that the requirements apply to two main areas. As of the 1st December this year, persons in "pre-approval controlled functions" (PCFs) will require Central Bank approval before they can take these senior positions. By the 1st March 2012 new staff appointed to Controlled Function (CFs) will also be subject to the Regulations and Standards.
  • The new regime, which replaces the regime established in 2006, applies to all persons/entities in Ireland that are regulated by the Central Bank, with the exception of credit unions.
  • Regulated entities may not permit a person to perform a PCF or CF unless satisfied on reasonable grounds that he/she complies with the regulations and standards and has agreed to so comply. Where there are concerns about the fitness and probity of such a person, the Central Bank has the power to investigate, suspend, remove and/or prohibit him/her from acting in a PCF/CF position.
  • The new requirements are being introduced on a phased basis. From 1 December 2011 existing and new staff in PCFs will be subject to the regulations and standards. Firms are required to notify the Central Bank of each individual in the organisation in a PCF by 31 December 2011.

  • From 1 March 2012 new appointments to less senior positions (CFs) will be subject to the Regulations and standards. From 1 December 2012 the Regulations and Standards will apply to all staff and existing CFs.
  • Regulated firms are required to monitor on an ongoing basis the fitness and probity of persons performing PCFs and CFs, which will include due diligence reviews, the maintenance of records relating to such reviews and the obtaining of annual confirmations from such persons.
  • Among the Due Diligence Requirements are:
  •       - Directorship Searches
  •       - Restricted / Disqualified Director Searches
  •       - Judgment Searches
  • Rochford Brady can assist with these due diligence search requirements, with a special package price for Fitness & Probity requirements. Searches in other jurisdictions are also available.
  • For further information on the Fitness & Probity Standards, please Click Here
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