The Fitness and Probity Regime applies to persons in senior positions (referred to in the legislation as Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs) within regulated financial service providers (RFSPs).

A person performing a CF must have a level of fitness and probity appropriate to the performance of that particular function.

In relation to Fitness and Probity, the Central Bank’s Guidance on Fitness and Probity Standards 2018 do not limit Control Functions (CFs) to functions performed in the State. Accordingly, a person performing a CF at a location outside of the State on behalf of a regulated financial service provider authorised, licensed or registered in the State, will be subject to Part 3 of the Central Bank Reform Act 2010.

PCFs are a subset of CFs and the prior approval of the Central Bank is required before an individual can be appointed to a PCF role.

A firm must not appoint an individual to perform a PCF role until the Central Bank has approved the appointment in writing.

In addition to the Central Bank’s Fitness and Probity Regime for CFs and PCFs, the CJA 2010 to 2021 also places an obligation on the beneficial owners of VASPs to be fit and proper.