Investigations and Enforcement

The Central Bank has statutory enforcement powers under the Fitness and Probity Regime as set out in Part 3 of the Central Bank Reform Act 2010 including the powers of investigation, suspension and prohibition.

Investigation

The Central Bank has the power to conduct an investigation into the fitness and probity of an individual who performs a CF (including a PCF) role, who formerly performed such a role (subject to certain statutory limitations), or who is proposed to be appointed to a CF (but not a PCF) role 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 powers to obtain evidence to investigate the individual’s fitness and probity.

Suspension Notice

The Central Bank may issue a Suspension Notice to remove an individual from a CF (including a PCF) role for a limited period either during an investigation or following a Prohibition Notice (prior to the Prohibition Notice taking effect).

Prohibition Notice

At the end of a fitness and probity investigation, the Central Bank may prohibit an individual from performing a CF (including a PCF) role or roles for a specified period or indefinitely. The Central Bank may publish the Prohibition Notice.

Read our public statements on previous Prohibition Notices.

Enforcement Procedures

Our procedures for fitness and probity investigations, suspensions and prohibitions are as follows:

• Fitness and Probity Investigations, Suspensions and Prohibitions: Guidance (April 2023). This Guidance replaces previous guidance.
• Central Bank Reform Act 2010 (Procedures Governing the Conduct of Investigations) Regulations 2023. These Regulations replace previous regulations.

The Guidance and Regulations were updated in April 2023 following the commencement of Part 3 of the Central Bank (Individual Accountability Framework) Act 2023. We have issued a guide explaining the changes and how they apply to investigations and related procedures which were ongoing at that time – see Fitness and Probity Investigations, Suspensions and Prohibitions: Guide to Transitional Arrangements Arising from the Central Bank (Individual Accountability Framework) Act 2023 (April 2023). We have also notified relevant industry bodies of the changes – see our Industry Letter of 21 April 2023.

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.