knowledge 25 February 2026 |

CBI’s Focus on Fitness and Probity Continues with Consultation on Prohibition Notices

In continuing its work on improvements to the fitness and probity (“F&P”) regime¹, the Central Bank of Ireland (“CBI”) has launched a consultation on prohibition notices under the F&P regime. Consultation Paper 166 (“CP166”) (here) is accompanied by draft supplemental guidance (the “Supplemental Guidance”) (here). CP166 seeks feedback on the proposed Supplemental Guidance, which aims to provide further clarity on how the CBI approaches prohibition procedures related to F&P.

The F&P Regime and Prohibition Notices

The CBI’s F&P regime regulates individuals performing senior or customer-facing roles within financial services firms to ensure that such persons are competent, capable, honest, ethical, financially sound, and act with integrity.

The F&P regime consists of three key pillars. The first pillar sets out obligations for financial services firms to ensure their personnel are appropriately fit and proper. The second pillar requires firms to acquire CBI approval prior to the appointment of individuals to senior roles. CP166 focuses on the third F&P pillar, relating to the CBI’s investigation of individuals in, or previously in, both controlled functions (“CFs”) and pre-approval controlled functions (“PCFs”), to assess whether they meet the required F&P standards to carry out the CF/PCF role. In the negative, or if an investigation is deemed unnecessary in light of undisputed facts, the CBI can subsequently issue a prohibition notice. The imposition of a prohibition on an individual precludes them from carrying out CF/PCF roles for either an indefinite or specified duration, pursuant to the Central Bank Reform Act 2010 (the “2010 Act”).

What Is This Consultation About?

CP166 seeks to gather stakeholder views on the CBI’s draft Supplemental Guidance which sets out further information related to the F&P investigations pillar. The CBI intends for the Supplemental Guidance to be read alongside its existing guidance on ‘Fitness and Probity Investigations, Suspensions and Prohibitions’ (the “Main Guidance”) (here). That Main Guidance was issued in April 2023, to ensure alignment with changes introduced to the F&P regime by the Central Bank (Individual Accountability Framework) Act 2023. The CBI’s Supplemental Guidance seeks to supplement the chapter titled ‘Decisions’ in the Main Guidance, with the aim that it will, in time, be part of the Main Guidance. The Supplemental Guidance provides additional detail in relation to:

• Determining a prohibition;
• Determining the nature, scope, duration and potential conditions of a prohibition; and
• Other matters including the cessation, termination or revocation of a prohibition.

Determining a Prohibition: Relevant Circumstances

The prohibition decision maker² will consider a number of factors in making a decision on whether to impose a prohibition order, including the public interest objectives of the F&P regime, the case’s relevant circumstances and the proportionality of a prohibition. The Supplemental Guidance outlines a non-exhaustive list of circumstances that will be considered by the decision maker when deciding whether to impose a prohibition notice and where one is imposed, the nature, duration and scope of it. These are:

(a) The extent to which the individual fails to meet the appropriate F&P standards required to carry out the relevant CF/PCF (or a part of the CF/PCF or any CF/PCF)

The decision maker will consider factors including the applicability and the materiality of the F&P legal and regulatory framework.

(b) The level of risk posed to the achievement of the objectives of Part 3 of the 2010 Act

The decision maker will consider the F&P objectives and matters including the seniority and responsibilities flowing from the particular CF/PCF role, the nature, scale, complexity and activities of the relevant entity concerned, the duration, frequency or repetition of any indicators of a failure to meet the F&P requirements, whether there has been damage to the financial system and whether there has been loss or detriment to the participants of the financial services sector.

(c) The individual’s previous supervisory, disciplinary, criminal and compliance record

The decision maker will consider previously imposed prohibitions, disciplinary or administrative sanctions and the individual’s criminal history.

(d) The duration of time that has passed since the occurrence of any matters indicating a failure to meet the appropriate F&P standards

The length of time that has elapsed since such matters occurred may be considered relevant to the necessity and proportionality of prohibition.

(e) The individual’s behaviour since the occurrence of any matters indicating a failure to meet the appropriate F&P standards

The decision maker will consider the relevance of evidence of the individual’s rehabilitation / remediation to the necessity and proportionality of prohibition.

(f) The individual’s understanding, or lack of understanding, of any matters indicating a failure to meet the appropriate F&P standards

The decision maker will consider the relevance of an individual’s insight into their failure to meet the appropriate F&P requirements to the necessity and proportionality of prohibition. The Supplemental Guidance outlines several ways in which an individual may indicate such insight into their shortcomings, including by the individual bringing matters which show their lack of F&P to the attention of the CBI.

(g) The individual’s personal circumstances

The decision maker will consider the potential implications of the prohibition for the individual, particularly in determining the proportionality of the prohibition, and the personal circumstances of the individual, particularly in determining the risks posed by the individual to F&P objectives.

The Supplemental Guidance clarifies that the significance placed on the relevant circumstances in each case and the consideration of the combined effect of several relevant circumstances are at the discretion of the decision maker.

Nature, Scope and Duration of Prohibition Notices

The Supplemental Guidance clarifies that prohibitions may vary widely in respect of their nature, scope and duration depending on the CF/PCF roles concerned and the firm to which the prohibition applies. The CBI identifies the level of risk presented to the F&P objectives, in alignment with the principle of proportionality, as the paramount consideration in determining a prohibition.  

Conditions

The Supplemental Guidance provides detail on prohibitions with conditions. The decision maker may permit an individual to continue performing their CF/PCF role(s) subject to specified conditions, for example:

• A condition requiring the supervision and monitoring of the individual in carrying out the relevant CF/PCF role;
• A condition precluding the individual from carrying out certain aspects of the relevant CF/PCF role; or
• A condition requiring the individual to receive training or gain certain skills or experience within a specified timeframe in relation to the relevant CF/PCF.

The Supplemental Guidance states that the CBI will not assume responsibility for the costs associated with any of conditions attached to a prohibition.

Other Matters Covered

Beyond the core decision-making factors, the Supplemental Guidance also addresses several other practical matters including the cessation, termination and revocation or variation of prohibition notices. In view of the protective, public interest purposes of the F&P regime, the CBI has previously published prohibition notices to ensure the full effect of the prohibition and to inform relevant entities and users of financial services of the prohibited individual. The Supplemental Guidance provides additional clarity on the CBI’s publication of prohibition notices.

What Happens Next?

The CBI welcomes feedback on CP166 until 25 March 2026. The CBI is particularly seeking views on whether the Supplemental Guidance is helpful, what other useful information could be included, and observations on the circumstances relevant to prohibition set out in the guidance. A feedback statement is to be issued by the CBI following the consultation.

How McCann FitzGerald LLP Can Help:

McCann FitzGerald LLP is a premier law firm in Ireland with deep expertise in relation to financial regulation. We can provide a full range of legal and compliance support services in connection with the CBI’s F&P Regime. Please contact us for further support.