In September 2021, the Central Bank of Ireland (the “CBI”) issued a Notice of Intention to amend its list of PCFs intending to create, remove and reclassify certain PCF roles. Having invited feedback from industry, on 5th April 2022 the CBI published its Feedback Statement along with the Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2022 with the list of PCFs revised as follows:
Key Takeaways from New Regulations: Separation of PCF-2 role: PCF-2A and PCF-2B
- Introduction of PCF-2A – Non-Executive Director;
- Introduction of PCF-2B – Independent Non-Executive Director;
- Removal of PCF-15 - Head of Compliance with responsibility for AML/CTF legislation;
- Introduction of PCF-52 – Head of Anti-Money Laundering and Counter Terrorist Financing (“AML/CTF”);
- Expansion of PCF-16 – Branch managers of branches established outside the State (to include managers of non-EEA branches (including the UK));
- Removal of PCF-31 – Head of Investment.
The PCF-2 role is separated 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 regulated financial service provider (“RFSP”) will be required to notify the CBI of the designation as PCF-2B by 3rd June 2022.
Removal of PCF-15 and introduction of PCF-52
The PCF-15 role (Head of Compliance with responsibility for AML/CTF legislation) is removed and a new PCF-52 role is introduced.
There is no obligation to appoint separate individuals to PCF-12 (Head of Compliance) and PCF-52 roles, the same individual can be identified as discharging both functions.
Each RFSP is required to review its functions to determine if a role meets the substance of PCF-52. For a person currently performing PCF-15, the RFSP will be required to notify the CBI as to how that person’s role should now be designated as a PCF-12, PCF-52 or both by 3rd June 2022.
Where an RFSP decides that a PCF-52 role exists, the RFSP must carry out an assessment in accordance with Section 21 of the Central Bank Reform Act 2010 (the “2010 Act”) and submit confirmation of such an assessment to the CBI by 3rd June 2022.
Expansion of PCF-16
This role is expanded to include managers of non-EEA branches (including the UK) of RFSPs. Affected RFSPs must assess any person currently performing the PCF-16 role in accordance with Section 21 of the 2010 Act and submit confirmation of that assessment to the CBI by 3rd June 2022.
Removal of PCF-31 (Head of Investment)