CBI issues new fitness and probity investigation guidance

The Central Bank of Ireland (CBI) has issued comprehensive guidance detailing its procedures for fitness and probity (F&P) investigations, suspensions, and prohibitions.

This document, titled 'Fitness and Probity Investigations, Suspensions and Prohibitions Guidance,' provides an overview for individuals, regulated financial service providers, and holding companies.

It clarifies the operational framework under Part 3 of the Central Bank Reform Act 2010 and the Central Bank Reform Act 2010 (Procedures Governing the Conduct of Investigations) Regulations 2023.

The Guidance is structured to address key stages: Preliminary Consideration, Investigation, Report, and Decision, with illustrative diagrams in Appendix 1. It explicitly replaces the 2011 Guidance on Investigations and the 2012 Regulations, aiming to enhance transparency in the CBI's oversight of financial sector integrity.

While not a definitive legal interpretation, it serves as a crucial reference for understanding the Bank's approach to F&P matters.

Investigations into a person's fitness and probity for a controlled function (CF) role commence when the Deputy Governor forms a suspicion and deems an investigation warranted.

This applies to current, proposed (non-PCF), and former CF holders within a six-year lookback period, or since April 19, 2023, whichever is shorter.

Grounds for suspicion include not meeting the Bank's F&P standards, with further examples in Appendix 2. Typically, a written notice is issued at least 14 days before an investigation starts, allowing the person 7 days to make submissions.

However, a Suspension Notice can be issued without prior notice if deemed necessary for proper regulation.