Amendments to the list of Pre- Approved Controlled Functions (PCFs)
Tue May 10 2022
Note : For members, who do not hold PCF 2 or PCF 15 – no action is required
As previously advised, the Central Bank issued a Notice of Intention in September 2021, in respect of amending the list of Pre-Approved Controlled Functions. Links to the Feedback Statement and the Amending Regulations are attached.
The Central Bank has confirmed that they are:
- Splitting the existing PCF-2 Non-executive director into PCF-2A Non-executive director and PCF2-B Independent non-executive director;
- Removing the existing PCF-15 Head of Compliance with responsibility for Anti-Money Laundering and Counter Terrorist Financing Legislation and introducing PCF-52 Head of Anti-Money Laundering and Counter Terrorist Financing Compliance;
- Amending the titles of the roles which relate to the chairing of a board or committee i.e. PCF-3 – PCF-7;
- Expanding PCF-16 Branch Manager of branches in other EEA countries to include branch managers in non-EEA countries;
- Removing PCF-31 Head of Investment.
Action required for members
Segregation of PCF-2
All individuals currently occupying PCF-2 will be redesignated as PCF-2A (Non-executive director). It is not a requirement that firms have an Independent non-executive director (PCF-2B), therefore, only where applicable, firms are required to submit confirmation via in-situ process (via the Online Returns system – which should become available in mid-May) of any PCF-2B designations to the Central Bank within 6 weeks of the in-situ return becoming available.
Segregation of PCF-15/Introduction of PCF-52
The Central Bank advises that this amendment does not, in and of itself, result in any additional or changed requirements regarding the appointment of separate individuals to PCF-12 (Head of Compliance) and PCF-52(Head of Anti-Money Laundering and Counter Terrorist Financing Compliance). Firms are required to review its functions to determine whether the role meets the substance of PCF-52. It advises that it is possible that a regulated firm may not require a specific PCF-52. It is also confirmed that Individuals can occupy more than one PCF role e.g., an individual could be listed as PCF-12 and PCF-52.
- There is no action required from firms where an individual holds an existing PCF-12 designation.
- With respect to in-situ PCF-15s, this designation will be end-dated, and firms are required to notify (via the online reporting system in-situ return) the Central Bank of the appropriate PCF designation(s) of the individual i.e. either or both PCF-12 and PCF-52 within 6 weeks of the in-situ return becoming available (the CBI have advised it will become available in mid-May). The in-situ process that will be available to firms for all individuals who were performing these roles prior to 5th April.
If you have any queries on the above, please email firstname.lastname@example.org