The Central Bank has reminded firms of the legal obligations to ensure individuals working in regulated firms meet the highest standard of competence, integrity and honesty.
A fitness-and-probity regime is critical to protecting public interest and ensuring confidence in the financial system, it says, and warns that it expects firms to review their own fitness and probity policies, procedures and practices, and address any shortcomings.
The Central Bank has written to the management of all regulated financial services firms, reminding them of their legal obligations under the fitness and probity (F&P) regime, introduced in the Central Bank Reform Act 2010 to ensure that individuals who work in regulated firms meet the highest standard of competence, integrity and honesty.
Derville Rowland (director general, financial conduct) says: “The fitness and probity regime is central to our role as a gatekeeper for the financial system, ensuring that we can fully assess whether the most senior people working in the financial services industry are fit and proper. This is critical to the protection of the public interest, and to ensuring that there is public trust and confidence in the financial system.
“Staff must be competent, but must also act with integrity at all times. Where we see evidence that firms are falling short in their obligations, we will take appropriate action, including removing individuals from those roles,” she said.
Firms must conduct due diligence on an ongoing basis to ensure that employees in controlled functions continue to comply with the requirement.