Fitness & Probity — News, Events and Updates

Following our Consultation (CP160) earlier this year, the Central Bank has published its Feedback Statement and revised Guidance on the Standards of Fitness and Probity.

 

For further details see F&P Consultation and Updates 2025.

The Central Bank will host an industry webinar to provide an overview of the revised Guidance on the Fitness and Probity Standards on 9 December.

Registration for this event is now open.

Following engagement with industry, the Central Bank of Ireland (“Central Bank”) acknowledges the challenges with the existing PSD2 reputation evidential requirements for firms.

Accordingly, we have reviewed and simplified the approach to fulfilling the requirements under the European Banking Association (“EBA”) Guidelines.

These changes are applicable to PCF applications for Payment Institutions, Electronic Money Institutions and Account Information Service Providers.

The new PSD2 evidential requirements are set out in the Guidance on the F&P Standards 2025 (“Guidance”), which provides details on matters relating to PSD2 PCF applications.

The new Guidance will take effect from the date of publication. However, the Central Bank understands that it will take time for firms to assess and adapt to the changes.

On 9 December 2025 the Central Bank will host a webinar event introducing the new F&P Guidance, as well as an additional webinar for PSD2 sector firms to discuss the incoming changes and address practical questions.

Registration for this event is now open.

Central Bank of Ireland has published a number of updates in relation to the Fitness and Probity (F&P) Regime following recommendations made by Mr Andrea Enria in last year’s Fitness and Probity Review.

Consultation Paper (CP160) has been published regarding revisions to the F&P regime and can be viewed, along with further published guidance.

The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) have developed and will manage a system for the exchange of information relevant to the assessment of the fitness and propriety of holders of qualifying holdings, directors and key function holders of financial institutions by competent authorities (hereinafter “ESAs Information System”).

PCF applications submitted to the Central Bank of Ireland will have personal data reflected on the ESA Information Sharing System hosted by EIOPA from May 2025.  Personal data includes name, date of birth and place of birth. 

The ESA Information Sharing System will enable authorised individuals within National Competent Authorities to ascertain if other NCAs are performing or have performed a fitness and probity assessment for individuals. 

• Joint Guidelines on the exchange of information relevant to fit and proper assessments
  
• ESA Information Sharing System Privacy Statement

Where applicable, personal data will be transmitted to the ESAs Information System established pursuant to Article 31a of the ESAs’ Founding Regulations.

For more information on the processing of personal data via the ESAs Information System, please visit the EIOPA website for more information.

Please also see the Transfer of Personal Data section of the Central Bank website for more information.

Both the PCF Annual Confirmation and CF Annual Certification facility will be open on the Portal from 1st Jan 2025.

Enhancements to the current Fitness & Probity (F&P) Regime under IAF (Individual Accountability Framework) require regulated firms, credit unions and in scope holding companies to proactively certify that individuals carrying out CF and PCF roles meet the Central Bank’s standards of F&P.

CF certification is in respect of Controlled Function holders at year end 2024.

Please note that the PCF Annual Confirmation is in respect of current active PCF holders in the firm.

The below system guidance has been updated to include the steps for CF Certification submission.

Please note that submission windows will align with previous years. If you have any queries in relation to timelines please contact your supervisory team.

PCF Annual Confirmation and CF Certification Guidance December 2024

Enhancements to the current Fitness & Probity (F&P) Regime under IAF (Individual Accountability Framework) require regulated firms and Credit Unions to proactively certify that individuals carrying out CF and PCF roles meet the Central Bank’s standards of F&P.

The Certification Regulations have applied since 8 January 2024 and the first submission will be required in 2025.

These changes apply to RFSPs, Credit Unions and some Holding Companies which are in scope for F&P.

Both the PCF Annual Confirmation and CF Annual Certification facility will be open on the Portal from 1st Jan 2025 to facilitate your 2024 submissions.

The current guidance will be updated to include the CF Annual Certification process which will be similar to the PCF Annual Confirmation process detailed in the guidance.

PCF Annual Confirmation Guidance

The updated guidance will be available on our website in December.

The F&P approval process has continually evolved and been enhanced over time. However, it is now more than a decade in operation. The Central Bank has therefore decided to commission an independent review of the F&P approval process to ensure that it remains effective into the future. This review will be led by Andrea Enria and will be published in Q3 2024.

Fitness and Probity Review - Terms of Reference

Further to S.I. 663 of 2023, the Central Bank of Ireland introduced an amendment to PCF 16 ‘Branch Manager of branches established outside the State’ such that it is only applicable where the business arising from the branch amounts to 5% or more of, as applicable, the assets or revenues or gross written premium of the regulated financial service provider. The Central Bank of Ireland is providing additional information regarding the change to PCF-16 in the form of frequently asked questions.

PCF-16 Information Note 

As previously communicated, the Central Bank of Ireland has introduced the following new PCF and HCPCF roles from 29^th December 2023.

• PCF-54 Head of Material Business Lines for Insurance Undertakings
• PCF-55 Head of Material Business Lines for Investment Firms

• HCPCF1 – the office of the chair of the board of the holding company
• HCPCF2 – the officer of director of the holding company

The In-Situ Returns process for all of the above roles opens on the Portal from the 22^nd January 2024 for a six week period.  Closing date is 3rd March 2024.

View Guidance on In- Situ Process

The Annual PCF Confirmation is accessible via the F&P section of the Central Bank Portal and is now available for completion. Firm’s should review the PCF roles listed in the Annual PCF Confirmation and correct any information prior to submission such as; entering start dates or submitting resignations. Submission is final and cannot be amended once completed. 

PCF Annual Confirmation Guidance

Further to the Central Bank (Individual Accountability Framework) Act 2023 (the IAF Act), the Certification Regulations are now in effect.

Section 21 of the 2010 Act, as amended by the IAF Act, and the Certification Regulations require that where a firm/holding company is satisfied on reasonable grounds that a person performing a CF role,

1. complies with any standard of fitness and probity issued by the Central Bank under section 50 of the 2010 Act; and
2. agrees in writing to comply with such standard of fitness and probity and to notify the firm/holding company without delay if for any reason he or she no longer complies with such standard of fitness and probity,

the firm/holding company is required to certify that the individual complies with such standards of fitness and probity.

The Certification Regulations outline Regulated Financial Service Providers (RFSPs) and Holding Companies obligations regarding their ongoing obligation to comply with the Fitness and Probity regime, including:

• The circumstances triggering a requirement to certify that a person is compliant with standards of fitness and probity, and the period of validity of such certification
• Procedures, systems and controls to be adopted and checks to be performed by RFSPs and holding companies
• Record keeping obligations

Reporting of information by RFSPs or holding companies to the Bank in relation to their obligations.