Supervision Process for IIA Non Retail Firms 

General

The supervision process for investment business firms authorised under the IIA mirrors the general supervision process of the Central Bank.  This general supervision approach seeks to ensure that all regulated financial services providers meet their responsibilities to have strong management, internal control and compliance procedures in place, and have people of integrity and competence at all levels in their organisations. All Irish authorised financial service providers, whether engaged in international or domestic activities, are expected to implement best practice.

Governance

Companies must have systems, procedures and policies in place to mitigate risk and monitor compliance with their internal policies. The role of the Investment Firms and Fund Supervision Division involves oversight of the quality of the institution’s corporate governance, risk management and internal control systems.

Supervisory Process

Our supervisory process is carried out by a number of different approaches some of which would include:

  • Analysis of returns submitted to the Central Bank
  • Risk-rating of firms
  • Themed inspections
  • Review meetings
  • Regular correspondence and engagement with firms under our supervision

Fitness & Probity

A sound and effective fitness and probity 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 an investment business firm authorised under the IIA.

“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.

A completed Individual Questionnaire ('IQ') must be submitted in respect of each director and senior manager.  Please note that the Central Bank of Ireland's new Fitness and Probity regime came into effect on 1 December 2011.  For further information on this regime please click on the following link.

PRISM

The Probability Risk and Impact SysteMTM (PRISMTM) is the Central Bank’s risk-based framework for the supervision of regulated firms.  For more information visit our PRISMTM section.