RegSol Blog

Central Bank of Ireland issues Fitness and Probity Interview Guide

June 2021

The Fitness and Probity regime was introduced by the Central Bank Reform Act 2010. The purpose of the regime is to ensure that people working in certain key roles and customer facing positions within regulated financial service providers are competent, capable, honest, ethical, and financially sound.

There are 3 keys aspects of the fitness and probity regime:

Ongoing obligations – Regulated firms have on going obligations regarding the regime. Firms should assess whether key personnel satisfy the standards as required on an ongoing basis. Firms should be able to demonstrate how they verified this to the Central Bank if requested to do so. There is also the annual PCF Confirmation return to be completed.

Gatekeeping role – with the monitoring of CF (Controlled functions) and PCF (Pre-approval controlled functions) the Central Bank can ensure that only those candidates that satisfy the required of the fitness and probity regime are in key positions within regulated financial service providers.

Investigations – The Central Bank has the power to conduct an investigation into the fitness and probity of an individual who performs a CF/PCF or who is proposed to be appointed to a CF.

In addition to the detailed information available on the Central Bank’s website these interview guidelines will provide added information to candidates about the types of interviews the Central Bank can conduct and guidance on how to prepare for them.

Central Bank website with details on fitness and probity can be found here: Fitness and Probity

For the guidelines on interviews issued in June see the link here: Fitness & Probity Interview Guide

The Central Bank’s Director General, Financial Conduct, Derville Rowland spoke at a webinar at the Institute of Directors on the 10th of June 2021, where she outlined the relationship of the fitness and probity regime to good culture. Ms Rowland noted ““The F&P regime seeks to ensure that regulated firms and individuals who work in those firms are committed to high standards of competence, integrity and honesty, and are held to account when they fall below these standards. The regime has been instrumental in our work in seeking to ensure that the right people occupy key roles in the firms we regulate”.

Press Release 10th June 2021

By: Eilish Larkin - Regulatory Consultant