On 4 January, the Central Bank published the latest version of the Fitness and Probity Frequently Asked Questions (FAQs) to address commonly asked questions in relation to the operation of the Fitness and Probity Regime. It further addresses certain questions that arise in the context of the amendments made to the Central Bank Reform Act 2010 by the European Union (Single Supervisory Mechanism) Regulations 2014. The December 2016 FAQs (the last version of which was published in July 2015) contain the following updates:
- A new section has been added, which addresses FAQs relating to certified persons. Certified persons are not currently within the scope of the Fitness and Probity Regime, however, the section makes clear that the outsourcing exemption does not apply when outsourcing preapproval controlled functions (PCFs) and controlled functions (CFs) to certified persons.
- Additional questions relating to PCFs that were previously published in the Central Bank's Guidance on Fitness and Probity Amendments have been included. The FAQs provide guidance on the following PCFs: Chief Operating Officer (PCF42), Head of Claims (PCF-43), Head of Client Asset Oversight (PCF-45) and Head of Actuarial Function as a new PCF introduced under Solvency II. The FAQs also clarify that those persons performing removed PCF roles of Chief Actuary (PCF-20) and Signing Actuary (PCF-44) cannot automatically become Head of Actuarial Function. Such proposed individuals will have to obtain the usual Central Bank pre-approval before being appointed to the role of Head of Actuarial Function.
- As part of the IQ process, applicants seeking pre-approval to the roles of Single Director (PCF-01) in a private company limited by shares or Sole Trader (PCF-10) within a regulated financial services provider (RFSP) must now obtain Garda Vetting clearance.
- Question 9.13 sets out the procedure for completing the Garda eVetting process that the roles of Single Director (PCF-01) and Sole Trader (PCF-10) are required to undergo. Question 9.1 also clarifies which aspects of the IQ process that are the RFSP's responsibility to complete and which are the responsibility of the proposed individual.
A link to the December 2016 FAQs is here.