Investigations and Enforcement

The Central Bank has statutory enforcement powers in respect of the Fitness and Probity Regime as set out in the Central Bank Reform Act 2010, including the powers of investigation and prohibition.

Investigation into an Individual

The Central Bank has the power to conduct an investigation into the fitness and probity of an individual who performs a CF/PCF or who is proposed to be appointed to a CF where:

• There is reason to suspect the individual’s fitness and probity to perform the relevant function, and
• An investigation into the individual’s fitness and probity is warranted.

Once an investigation has commenced, the Central Bank has additional powers to obtain evidence to investigate the individual’s fitness and probity.

Read further details regarding F&P investigations in Guidance On Investigations under Part 3 of the Central Bank Reform Act 2010 (1)

Suspension Notice

If the Central Bank is investigating an individual’s fitness and probity, the Central Bank may issue a Suspension Notice to remove the individual from performing any CF role(s) for a limited period of time.

Prohibition Notice

At the end of a fitness and probity investigation, the Central Bank may prohibit an individual from performing CF role(s) in Regulated Firms for a specified period or indefinitely. The Central Bank may also publish the prohibition notice.

Read our public statements on previous prohibition notices.

The above is a high-level overview of some of the Central Bank’s statutory powers in respect of the prohibition and suspension of CF holders. For further details on F&P investigations, suspension and prohibition notices, individuals and Regulated Firms should refer to:

• Central Bank Reform Act 2010
• Central Bank Reform Act 2010 (Procedures Governing the Conduct of Investigations) Regulations 2012
• Guidance On Investigations under Part 3 of the Central Bank Reform Act 2010 (1)

Investigation into a Regulated Firm and/or Management of a Regulated Firm

Regulated Firms have an ongoing statutory obligation to ensure they do not allow an individual to perform a CF unless the Regulated Firm is satisfied that the individual complies with the Fitness and Probity Standards and the individual has agreed to abide by those standards.

Regulated Firms must also seek the Central Bank’s approval before appointing an individual to perform a PCF role. In circumstances where an individual is appointed to a PCF role without the approval of the Central Bank, we will hold the appointing firm responsible for non-compliance.

Failure to comply may result in an investigation and the imposition of sanctions by the Central Bank under the Administrative Sanctions Procedure (ASP) on a Regulated Firm and/or individuals concerned in management of Regulated Firms.