Introduction
A new Fitness and Probity Regime came into effect on 1 December 2011 and will be fully implemented by 1 December 2012.
The Regulations identify those functions that come within the scope of the Regime:
The Regulations apply to Pre-Approval Controlled Functions and Controlled Functions. The Regulations apply to financial service providers other than Credit Unions.
The Regulations identify 41 senior positions as Pre-Approval Controlled Functions such as Chief Executive Officer, Director or Heads of Compliance, Risk, and Internal Audit. Central Bank approval is required before appointments are made to these positions.
The Regulations also prescribe specific categories as Controlled Functions and persons performing these functions include the staff who exercise a significant influence on conduct of the affairs of the financial service provider, monitor compliance or perform functions in a customer-facing role. Financial service providers need to read both the 
Principal Regulations and the Amending Regulations.
Standards set the benchmark for Fitness and Probity.
The Fitness and Probity Standards provide that a person performing a Pre-Approval Controlled Function or Controlled Function is required to be:
- Competent and Capable;
- Honest, Ethical and to act with Integrity; and
- Financially Sound.
The Fitness and Probity Standards are being implemented on a phased basis as follows:
- From 1 December 2011, apply to persons performing Pre- Approval Controlled Functions;
- From 1 March 2012, they will apply to persons appointed to Controlled Functions (other than Pre-Approval Controlled Functions). This is to include new offers of employment and internal transfers/promotions which may involve a Controlled Function role after that date.
- They will apply to all persons occupying Controlled Functions as at 1 December 2012.
Financial service providers are responsible for ensuring that staff performing Pre-Approval Controlled Functions / Controlled Functions meet the Fitness and Probity Standards, both on appointment to such functions and on an on-going basis. Specifically, a financial service provider must not permit a person to perform a Pre-Approval Controlled Function or Controlled Function unless it is satisfied on reasonable grounds that the person complies with the Fitness and Probity Standards and has obtained confirmation that the person has agreed to abide by those standards.
Before a financial service provider can appoint a person to a Pre-Approval Controlled Function, the Central Bank must have approved the appointment in writing.
Financial service providers must not offer to appoint a person to perform a Pre- Approval Controlled Function until the Central Bank has approved the appointment in writing.
Standards
List of Pre-Approval Controlled Functions
List of Controlled Functions
Non Statutory Guidance
The purpose of this Guidance is to assist financial service providers in complying with their obligations under Section 21 of the Central Bank Reform Act 2010 in relation to the Fitness and Probity Standards. The Guidance sets out the steps which the Central Bank would expect a financial service provider to take in order to satisfy itself on reasonable grounds that persons performing Controlled Functions or Pre-Approval Controlled Functions are compliant with the Fitness and Probity Standards. It also includes guidance on other issues including, for example, approval by the Central Bank of appointments to Pre-Approval Controlled Functions.
Guidance
Frequently Asked Questions