Supervision Process

PRISM

The Probability Risk and Impact SysteM^TM (PRISM^TM) is the Central Bank’s risk-based framework for the supervision of regulated firms. It supports us in challenging firms, judging the risks they pose to the economy and the consumer and mitigating those risks we judge to be unacceptable.

Under PRISM^TM, the most significant firms - those with the ability to have the greatest impact on financial stability and the consumer - receive a high level of supervision under structured engagement plans, leading to early interventions to mitigate potential risks. Conversely, those firms which have the lowest potential adverse impact are supervised reactively or through thematic assessments, with the Central Bank taking targeted enforcement action against firms across all impact categories whose poor behaviour risks jeopardising our statutory objectives including financial stability and consumer protection.

Read more about Legislation.

Read more about PRISM.

Fitness & Probity Requirements

A sound and effective fit and proper test is a critical component of the regulatory regime. To ensure the proper discharge of their responsibilities, it is important that Directors and Managers have the skills to manage a (re)insurance undertaking.

“Fitness” requires that a person appointed as a Director or Manager has the necessary qualifications, skills and experience to perform the duties of that position. “Probity” requires that a person is honest, fair and ethical.

Read more on our Fitness & Probity Requirements.

Fit and Proper Requirements for Insurance Holding and Mixed Financial Holding Companies

Insurance holding companies and mixed financial holding companies (“holding companies”) are subject to the Solvency II fit and proper (“F&P”) requirements, Regulations 261 and 262 of the European Union (Insurance and Reinsurance) Regulations, 2015 (the “Solvency II Regulations”) and Irish Fitness and Probity Regime. Regulation 261 of the Solvency II Regulations states that holding companies shall ensure that all persons who effectively run the holding company must be fit and proper to perform their duties.

In accordance with Regulation 261(3) of the Solvency II Regulations, an insurance holding company must notify the Central Bank when a new person is appointed to manage the holding company. In this regard the Central Bank requires this notification to be provided no later than 5 working days from the date of the appointment of an individual to a controlled function role.

Introduction of Pre-Approval Controlled Functions - December 2023

Holding Companies Regulations 2023 (S.I. No. 664 of 2023)

Corporate Governance Requirements

Undertakings must have systems and policies in place to mitigate risk and monitor compliance with their internal policies. Our role involves oversight of the quality of the institution's corporate governance, risk management and internal control systems.

Central Bank of Ireland - Codes

Consumer Protection Code

The Consumer Protection Code was introduced in August 2006 to ensure a consistent level of protection for consumers, regardless of the type of financial services provider they choose.

Read more on our Consumer Protection Code on our Codes page.

Minimum Competency Code

The Minimum Competency Code sets out minimum professional standards for persons providing certain financial services, in particular when dealing with consumers. It aims to ensure that consumers obtain a minimum acceptable level of competence from individuals acting for and on behalf of regulated firms in the provision of advice and associated activities in connection with retail financial products.

Read more on our Minimum Competency Code.