Central Bank tweaks role-approval guidelines
The Central Bank has published fresh guidance on prohibition notices under its fitness-and-probity regime, the system under which it approves the appointment of individuals to key roles in regulated financial institutions.
The supplemental guidance sets out the circumstances that a decision-maker will consider when determining the nature, scope, and duration of a prohibition, which forbids a person from performing a controlled function in a regulated financial firm.
The Central Bank says that it has made “targeted amendments” to the guidelines after considering some of the feedback received during a consultation process.
Publishing notices
These include more information on the decision-making process for publishing prohibition notices, and clarification on the factors considered when making that decision – “including the personal circumstances and privacy considerations of the individual”.
“The finalised supplemental guidance provides clarity on the circumstances relevant to prohibition decisions and our procedures in this important area, while maintaining the flexibility necessary to consider the unique circumstances of each case,” said deputy governor Colm Kincaid.
The document published today (30 July) supplements the regulator’s main guidance on F&P, which also covers procedures for investigations and suspensions.
High Court judgment
The Central Bank is reviewing its overall guidance in the area, and Kincaid said that the documents would be integrated in due course.
The regulator’s review is being carried out as it implements the findings of a recent High Court judgment, which found that a senior executive who was given a one-year ban did not receive his entitlement to natural and constitutional justice and basic fairness of procedures.
The Central Bank had previously made changes to its F&P processes in 2024 after a review undertaken by Andrea Enria, a former chair of the ECB Supervisory Board.