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.

Supervision

The Central Bank's supervision process is underpinned by its Probability Risk and Impact SysteM (PRISM). PRISM is a risk-based framework which supports our challenge of firms and our judgement of the risks they pose to the economy and the consumer.The Central Bank of Ireland serves the public interest by safeguarding monetary and financial stability and by working to ensure that the financial system operates in the best interests of consumers and the wider economy . PRISM supports the mitigation of perceived risks within firms to achieve this mission. For more information regarding PRISM, see PRISM Explained.

Supervisory processes undertaken by the Central Bank include, but are not limited to, the following:

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

Fitness & Probity

Individuals must evidence they meet the requirements of the Fitness & Probity Standards and this is assessed by the Central Bank through an Individual Questionnaire (‘IQ’). “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.

For further information on the Fitness and Probity regime please click on the following link.

Consumer Protection 

One of the key responsibilities of the Central Bank’s mandate is consumer protection. The investment firms supervisory division has a dedicated Conduct Team which monitors investment firms’ compliance with the conduct of business requirements.
The Conduct Team works in collaboration with the Consumer Protection Directorate. Further information on the Consumer Protection Directorate is available on their webpage.