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Central Bank wants views on F&P changes

The Central Bank has launched a consultation process on proposed changes to the system under which it approves the appointment of individuals to key roles in regulated financial institutions. 

The revisions to the fitness-and-probity (F&P) framework follow recommendations made last year by an independent review of the system. 

The review, undertaken by Andrea Enria, a former chair of the ECB Supervisory Board, was commissioned after a judgment published by the Irish Financial Services Appeals Tribunal (IFSAT) identified several issues in how the Central Bank handled a case in which an individual’s application to a senior role was refused. 

The regulator committed itself to implementing the recommendations and has already set up a dedicated unit to oversee the system. 

‘Clarity and transparency’ 

The consultation paper includes the recommendations for increased clarity and transparency on how the Central Bank applies F&P standards, and a review of the list of pre-approval-controlled functions (PCFs), or the key roles that are covered by the framework.  

The Central Bank says that it is committed to a “substantive” review of which financial roles are covered by the F&P regime. 

“However, given the list of PCFs is embedded in the Senior Executive Accountability Regime (SEAR), which is in its early stages of introduction, it would not be appropriate so soon after coming into effect to change the list of PCFs within the SEAR,” the regulator states. 

Instead, it plans an “initial, targeted revision” of the list, followed by a more substantive review to be co-ordinated with the planned three-year review of the SEAR in 2027.  

The consultation process will run until 10 July.