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knowledge 12 April 2022 |

Fitness and Probity Update – Central Bank Amends PCF List

On 4 April 2022, the Central Bank of Ireland (the “CBI”) issued new regulations amending the list of pre-approval controlled functions (“PCFs”) here. The CBI also published a related feedback statement here and an updated PCF list dated 5 April 2022 here.

The amendments to the PCF list follow a notice of intention issued by the CBI in September 2021 (outlined in further detail in our earlier briefing here).

The CBI has amended the PCF list as follows:

  • by expanding PCF-16 to include branch managers in non-EEA countries;
  • by introducing a stand-alone PCF in respect of ‘Independent non-executive director’ (PCF-2B) and in respect of ‘Head of Anti-Money Laundering and Counter Terrorist Financing Compliance’ (PCF-52); and
  • by removing PCF-31 ‘Head of Investment’.

Comment

The amendments to the PCF list had been anticipated by regulated firms.

In relation to the introduction of a stand-alone PCF for independent non-executive directors (“INEDs”), the CBI has clarified that this amendment is for “record-keeping purposes only, and accordingly will not result in any additional or changed requirements regarding the appointment of INEDs.” Credit institutions and insurance undertakings should note that the CBI reminds those firms of their obligations under their respective corporate governance requirements to carry out annual reviews where INEDs have been members of a board for more than nine years.

Next Steps

Regulated firms should take note that the in-situ confirmation process will commence on 25 April 2022 until 3 June 2022. Annex 1 of the CBI’s feedback statement provides further detail on the confirmations which should be provided by regulated firms during this period. The CBI confirms that the full application process applies to any new appointment to a PCF role.

This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.