New Regulations regarding Pre-Approved Control Functions (PCFs)May 2022
On 5th April, the Central Bank of Ireland (the “CBI”) published the Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2022 amending its list of PCFs by creating, removing and reclassifying certain roles on the list.
One change that is likely to be of interest to our clients is the separation of PCF-2 role into PCF-2A and PCF-2B.
The change involves splitting the PCF-2 role into two roles, (i) PCF-2A for the role of non-executive director and (ii) PCF-2B introducing the newly specified role of independent non-executive director (“INED”).
All individuals currently performing the PCF-2 role will automatically be re-designated as a PCF-2A.
Where an individual performing the PCF-2 role is considered independent, the firm will be required to notify the CBI of the designation as PCF-2B by 3rd June 2022.
For those individuals who were in-situ in the PCF2B role as at 5th April 2022, according to a recently published Guidance (Guidance on PCF In-Situ Return 2022 (centralbank.ie)
), firms can notify the CBI via the ‘PCF In-Situ Return – 2022 Regulations’ return (the PCF In-Situ Return) by 30th June 2022 as follows:
- Complete a “PCF In-Situ Return File”, which has been provided by the Central Bank;
- Upload the file to the Central Bank’s Online Reporting (ONR) System under the ‘PCF In-Situ Return – 2022 Regulations’ option;
- Provide confirmation that the information is correct selecting the tick box and stating the necessary due diligence has been performed; and
- Submit the file and confirmation to the CBI via the ONR System.
For more information regarding the changes to the other PCF roles, see the link below to RegSol’s article:
New Regulations regarding Pre-Approved Control Functions (PCFs)