The Central Bank recently prescribed six new pre-approval controlled functions (PCFs) for the purposes of its fitness and probity (F&P) regime. As a result, regulated financial service providers (RFSPs) will need to update their procedures and records in respect both of individuals who currently perform the newly prescribed PCFs and those who will perform PCFs in the future.

Newly Prescribed PCFs Relevant to the Funds Industry

Newly prescribed PCFs of relevance to the funds industry are:

  • Chief Operating Officer (PCF-42) for all RFSPs - this may affect Fund Service Providers.
  • Head of Investor Money Oversight (PCF-46) for Fund Service Providers – this will affect Fund Service Providers once the Central Bank’s new Investor Money Regulations are brought into force.

What Does this Mean?

Persons who are in situ in any of the newly prescribed PCFs on or before 31 December 2014 may continue in these functions and do not require approval from the Central Bank to do so.

For appointments to any of the newly prescribed PCFs on or after 31 December 2014, the Central Bank’s prior approval will be required and must be obtained in the standard way. 
By 30 June 2015, RFSPs will need to do the following:

  • Submit to the Central Bank a list of persons performing the newly prescribed PCFs as of 31 December 2014
  • Confirm to the Central Bank (in a form yet to be prescribed) that:
    • Due diligence has been undertaken as to the fitness and probity of the persons performing the newly prescribed PCFs
    • The RFSP is satisfied on reasonable grounds that those persons meet the statutory standards of fitness and probity
    • Those persons have agreed in writing to abide by the F&P standards