Fitness and Probity for Regulated Financial Service Providers
The Fitness and Probity Regime was introduced by the Central Bank of Ireland (the “Central Bank”) under the Central Bank Reform Act 2010 (the “2010 Act”)
The Fitness and Probity Regime applies to persons in senior positions (referred to in the legislation as Controlled Functions (“CFs”) and Pre-Approval Controlled Functions (“PCFs”)) within regulated financial service providers (“RFSP”).
The Fitness and Probity Regime also applies to RFSPs who are obliged to ensure that their senior personnel comply with the Fitness and Probity Regime.
RFSPs which are categorised as ‘Significant Institutions’ and ‘Less Significant Institutions’ by the European Central Bank are subject to the fitness and probity regime introduced by the Single Supervisory Mechanism (“SSM”) Regulation and the SSM Framework Regulation. Please refer to the SSM Page for further information. Specific information regarding the SSM in relation to fitness and probity can be found on the Completing and Submitting an Individual Questionnaire page.
The core function of the Fitness and Probity Regime is to ensure that persons in senior positions within RFSPs are competent and capable, honest, ethical and of integrity and also financially sound. The Central Bank has published a statutory code (the Fitness and Probity Standards) and guidance documents to assist RFSPs and individuals performing CF and PCFs to comply with their fitness and probity obligations.
More information regarding the specific Fitness and Probity Regime for RFSPs and credit unions and the statutory enforcement powers of the Central Bank in respect of the Fitness and Probity Regime can be found on the relevant page.