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Chair of the ECB Supervisory Board, Mr. Andrea Enria, has completed the Fitness and Probity review to compare Central Bank of Ireland (CBI) practices with those of other jurisdictions.
This review was announced in March 2024 following the Irish Financial Services Appeals Tribunal (IFSAT) decision to uphold an appeal regarding the CBI’s decision to refuse an individual’s application for a PCF role.
Launching the report at the CBI, Governor Gabriel Makhlouf accepted all of the recommendations within the report and announced that the timeline for implementation will be by year-end.
He pointed out that the Fitness and Probity Regime can never be a box-ticking exercise, with the cornerstone of the regime requiring firms to own the process, with transparency and fairness pivotal for a successful structure.
Governor Makhlouf further added: “Fairness, efficiency, and transparency are essential parts of the process, with tone also being important. All parties will receive timely feedback, and there will be an independent complaints process,” he said.
Michael D’Arcy, Chief Executive of IAIM, said: “IAIM welcomes the review and the recommendations outlined in the report but is awaiting clarity on some areas. For example, the biggest change will be the establishment of a single unit within the Central Bank of Ireland (CBI) to manage the Fitness and Probity Framework. This unit is expected to have enhanced seniority and independence in decision-making, but it is not yet known which section within the CBI the reorganised Fitness and Probity Framework staff will be based.”
He added: “Tone in these circumstances is important, and it's important that there’s an understanding on the CBI's side that tone matters. You can say something with an incorrect tone, and the import of the conversation changes very significantly."