Legislative Requirements and Guidance for Credit Institutions

Due to certain variations for different sectors, this content is only relevant for Credit Institutions. Click here to find information for other sectors..

The Central Bank’s Gatekeeper Function

The Central Bank’s Gatekeeper role is to assess the suitability (i.e. fitness and probity) of individuals put forward for certain senior roles (PCFs) in regulated financial services providers (RFSPs) and certain in scope holding companies (hereafter references to RFSPs include in scope holding companies). 

Firms are not permitted to appoint an individual to perform a PCF role unless the Central Bank has approved this appointment in writing.  Approval for an appointment may be sought through completing the Individual Questionnaire (IQ) which is submitted online via the Central Bank Portal.

Significant Credit Institutions Applications for PCF Approval

The ECB is responsible for the Fitness and Probity (FAP) assessments of the following applicants:

1. The management board of significant credit institutions;
2. Key Function Holders in significant credit institutions; and
3. The management board of all credit institutions applying for authorisation.
   

The ECB has published a list of the significant credit institutions (PDF 0.96MB).

ESMA and the EBA have published guidelines on the assessment of the suitability of members of the management body and Key Function Holders.

Significant Credit Institutions are required to submit their PCF applications for persons seeking a position on the management board and key function holders roles via the IMAS Portal. However, in advance of submitting the applications to the ECB, PCF applicants must register on the Central Bank Portal first and create their F&P Profile. Significant Credit Institutions can contact their Joint Supervision Team (JST) if they have any queries. Guidelines on using the IMAS Portal and technical support can also be accessed via the IMAS Portal.

See here for further information on Credit Institutions.

Due Diligence and Disclosure Requirements for PCF Applications

RFSPs should not submit an IQ to the Central Bank until they have carried out all necessary due diligence enquiries and are satisfied as to the individual’s fitness and probity for the proposed role. 

Individuals are required to be candid and truthful and to provide a full, fair and accurate response to all questions in the IQ.

Applications should disclose all information, relevant and potentially relevant, to the Central Bank for assessment of the individual’s fitness and probity for the proposed role.  Where there is any doubt as to the materiality of a piece of information, it should be disclosed and explained. The Central Bank will challenge RFSPs and individuals if they fail to make full disclosures in the IQ. The Central Bank takes non-disclosure seriously, especially where there is an apparent attempt to mislead. This may call into question not only the individual’s suitability but also the firm’s decision to propose the individual in question.

Failure to provide sufficient information in the IQ may result in delay in the assessment of PCF applications. 

Please see the Fitness and Probity Individual Questionnaire, Applications and PCF Roles Guidance (PDF 1.67MB) for further information.

Assessment of PCF Applications

When an IQ is received, the Central Bank conducts a desk-based assessment of the individual’s fitness and probity for the proposed role. This includes assessing the individual’s experience, qualification and skills for the particular role and their compliance with the Fitness and Probity Standards.

This assessment involves reviewing the IQ and supporting documentation submitted by the proposing RFSP/ holding company. We may need to gather additional information to further inform our assessment. This may include requesting the individual (and specified officer/employee of the applicant firm) to produce certain information/documents, answer questions or attend for interview(s).

Further details on the interview process are available in our Fitness and Probity Interview Guide (PDF 533.68KB) (PDF 533.68KB). 

Outcome

If the Central Bank is satisfied an individual meets the fitness and probity requirements for the proposed PCF role, the Central Bank will issue a notice approving the appointment.

If the Central Bank is not satisfied that an individual is of appropriate fitness and/or probity to perform the PCF role, the Central Bank may refuse the appointment of the individual. A refusal to approve the appointment by the Central Bank is an appealable decision to the  Irish Financial Services Appeals Tribunal.  
 
For further details of the application process, individuals and RFSPs should refer to: 

Legislation

Act

The Central Bank Act 2010 (as enacted)

The Central Bank Act 2010 (as amended)

Regulations and Codes

List of PCFs and CFs

Corporate Governance and Consumer Protection Codes

Introduction to Minimum Competency and the Minimum Competency Code (Note: the onus is on Regulated Financial Service Providers to determine if the Minimum Competency Code applies.)

Other Guidance