Central Bank Intermediary Times Updates
Thu Nov 26 2020
Central Bank Intermediary Times
The Central Bank published a bumper edition Intermediary Times on the 13th of November. The newsletter covered the following topics:
- What’s New? – Additions to the list of Pre-Approval Controlled Functions (PCFs) and Unity;
- COVID- 19;
- New Authorisations Framework;
- Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) –impact of COVID-19;
- Retail Intermediary Annual Returns;
- Professional Indemnity Insurance;
- Financial Requirements;
- Consumer Protection Code – Commission Arrangements;
- Trends in the Retail Intermediaries Sector;
- Consumer Insurance Contracts Act 2019; and
- Complex Products
For your reference, please see the latest edition of the INTERMEDIARY TIMES.
Fitness & Probity – Letter to Management of all Regulated Financial Services Providers
The Central Bank issued a letter to the management of all regulated financial services providers on the 17th of November setting out its expectations for firms to take appropriate action to address the significant issues identified by thematic inspections concerning their legal obligations under the Fitness and Probity (F&P) regime.
They highlighted a number of common issues and shortcomings, as well as a wide divergence of standards, in the implementation of the F&P Regime.
- In many of the firms, the level of awareness by Board members of their fitness and probity obligations was poor. This was evident in particular in relation to the process for appointing members to the Board.
- Where Pre-Approval Controlled Function (PCF) or Controlled Function (CF) roles are outsourced to unregulated Outsource Service Providers (OSPs), the majority of firms had not, as part of their due diligence in appointing CF role holders, obtained the required documentation nor made any inquiries as to the OSP’s process for assessing fitness and probity.
- While the majority of firms had compliance frameworks, policies and procedures in place, given the findings of the thematic inspections, it is clear that many firms are not undertaking robust compliance testing of their fitness and probity processes and procedures.
Deputy Governor Ed Sibley said: The F&P Regime is a cornerstone of the regulatory framework in Ireland. The Central Bank will not authorise firms, and will not approve persons to perform senior functions in regulated firms, where they do not meet our Fitness and Probity Standards.