There have been several fitness and probity developments in early 2026 and further detail is outlined in this article in relation to a Central Bank of Ireland (Central Bank) consultation on prohibition notices and two new pre-approval controlled function (PCF) roles relating to safeguarding.
- Consultation on prohibition notices under the fitness and probity regime
The Central Bank is consulting on draft ‘Supplemental Guidance’ on prohibition notices issued under its fitness and probity regime (Supplemental Guidance).
Background
The Central Bank may investigate the fitness and probity of an individual who performs, or performed, a controlled function (CF) role or a PCF role in a regulated financial services firm. Following an investigation, a report is prepared, and an independent decision maker, acting as delegate of the Central Bank, is appointed to consider the report. If the decision maker forms the view that the individual fails to meet the required standards of fitness and probity, they may impose a prohibition on the individual by way of a written prohibition notice.
A prohibition may:
forbid an individual from carrying out a CF/PCF role, or part of it, or forbid the individual from carrying out the role otherwise than in accordance with specified conditions
forbid the person from carrying out a CF/PCF role, or part of it, in relation to any regulated entity, a specified regulated entity or a class or classes of regulated entities
be imposed indefinitely or for a specified period
The Central Bank’s procedures in relation to prohibition notices are set out in the ‘Decision’ chapter of its existing Guidance on Fitness and Probity Investigations, Suspensions and Prohibitions (April 2023) (Main Guidance). The Main Guidance was published in 2023 to reflect changes made to the ‘investigations pillar’ of the fitness and probity regime under reforms introduced by the Individual Accountability Framework. It outlines the procedures for the imposition, confirmation and publication of a prohibition notice.
The Central Bank is now consulting on draft Supplemental Guidance, which will complement the Main Guidance. In summary, the draft Supplemental Guidance provides additional guidance on:
how the nature, scope and duration of a prohibition should be determined
cessation of a prohibition notice
termination of a prohibition agreement
publication of a prohibition notice
Once finalised, the Supplemental Guidance should be read together with the Main Guidance.
Key points in the draft Supplemental Guidance
Determining the nature, scope and duration of a prohibition
When determining the nature, scope and duration of a prohibition, the draft Supplemental Guidance explains that the objectives of Part 3 of the Central Bank Reform Act 2010 (2010 Act) and the relevant circumstances of the case must be taken into account. A non-exhaustive list of relevant circumstances that will be considered is provided, which are summarised as follows:
the extent to which the individual is not of such fitness and probity as is appropriate to perform the relevant CF/PCF role
the degree of risk posed to the achievement of the protective objectives of Part 3 of the 2010 Act
previous supervisory, disciplinary, criminal and compliance record of the individual
length of time that has elapsed since the occurrence of relevant matters
the individual’s behaviour since the occurrence of relevant matters
whether the individual has shown an understanding of the relevance of such matters to their fitness and probity
the individual’s personal circumstances
The draft Supplemental Guidance outlines some broader points in relation to the determination of the nature, scope and duration of a prohibition. In general, subject to the principle of proportionality, the greater the risk posed to the objectives of Part 3 of the 2010 Act, the more serious the nature of the prohibition will be. For example, where the risk posed is high, an outright prohibition of wide scope and indefinite prohibition may be appropriate. Where the risk posed is relatively low, a prohibition of a narrower scope and a shorter, specified duration may be appropriate.
Guidance is provided on when it might be appropriate for a prohibition to be imposed with conditions attached, together with a list of examples of the types of conditions that may be imposed.
Cessation of a prohibition notice
The draft Supplemental Guidance confirms that a prohibition notice will cease to have effect where one of the following occurs:
a prohibition agreement is terminated by the Central Bank
a prohibition notice is revoked by the High Court
a prohibition notice expires due to the passage of time
Before the Central Bank may decide to terminate a prohibition notice that was previously agreed in writing between the it, the prohibited individual and the regulated entity, the prohibited individual must request the Central Bank to terminate the prohibition agreement. The draft Supplemental Guidance outlines the circumstances that the Central Bank will consider when it receives a request, such as the amount of time that has passed since the prohibition was imposed and any new relevant and material information.
Where the High Court has previously confirmed a prohibition notice and a prohibited person wishes for the notice to be revoked or varied by the Court, the draft Supplemental Guidance explains that, in general, it will be up to the prohibited person to make an application to the Court for an order revoking or varying the prohibition notice and to satisfy the Court that it should make such an order.
Where a prohibition notice ceases to have effect, the individual may seek to resume performing the CF/PCF role to which the prohibition notice related, subject to the regulated entity being satisfied that the individual complies with the required standards of fitness and probity. In addition, in the case of a PCF role, as the Central Bank’s approval to perform the PCF role ceases when a prohibition notice takes effect, a new application must be made to the Central Bank for pre-approval, which will be assessed by the Central Bank in the usual way.
Publication of a Prohibition Notice
The Main Guidance specifies that the Central Bank may publish a prohibition notice where the Governor of the Central Bank is of the opinion that publication is necessary to achieve the purposes of Part 3 of the 2010 Act. The draft Supplemental Guidance explains the rationale for publication in more detail.
The Supplemental Guidance states that the Central Bank may publish a prohibition notice after it has been served and prior to it taking effect and that publication will be in compliance with the 2010 Act and the Central Bank’s obligations as a data controller.
2. New PCF roles for safeguarding
As notified upon the publication of the updated Fitness and Probity Guidance in November 2025, the Central Bank has, from today, introduced two new Head of Safeguarding roles to the PCF list:
- PCF-56 (Head of Safeguarding for Payment Institutions, Electronic Money Institutions and Small Electronic Money Institutions)
- PCF-57 (Head of Safeguarding for Crypto Asset Service Providers)
The legislative amendments were implemented by the Central Bank Reform Act 2010 (Sections 20 and 22) (Amendment) Regulations 2026 and will take effect from today, 10 February 2026.
The new PCF roles were already included in the PCF List in Appendix 2 of the Guidance on the Standards of Fitness and Probity 2025 when the guidance was published in November last year.
The Central Bank has issued the following information on its F+P Events webpage in relation to the new roles:
- With effect from 10 February 2026, persons proposed for the PCF-56 and PCF-57 roles must submit a PCF application via the usual process, i.e. the submission of the individual questionnaire (IQ).
- Where the firm has identified an individual who is deemed to be already performing the PCF-56 or PCF-57 role prior to 10 February 2026, an IQ is not required to be submitted. However, the firm must perform the required due diligence on these PCF role holders as set out in the Guidance on the Standards of Fitness and Probity 2025. Once the due diligence is completed, the in-situ submission can be completed via the fitness and probity section of the Central Bank Portal.
Conclusion
The draft Supplemental Guidance provides welcome clarity on how the Central Bank intends to approach the scope, duration and publication of prohibition notices. Overall, the consultation underscores the Central Bank’s continued focus on fitness and probity and individual accountability in the financial services sector.
The new safeguarding PCF roles make clear the Central Bank’s wider focus on safeguarding processes in payment institutions, e-money institutions and crypto asset service providers.
For further information on the Central Bank’s prohibition notice procedures or the fitness and probity regime, please contact Dario Dagostino, Partner, Mark Devane, Partner, Eoin O’Connor, Partner Patrick Brandt, Partner, Eimear O’Brien, Partner, Louise Hogan, Partner, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.
