Dáil Éireann Debate, Thursday - 17 July 2014
127. Deputy Michael McGrath asked the Minister for Finance the number of persons who have not passed the Central Bank’s fitness and probity regime in the banking and finance industry; and if he will make a statement on the matter. [32477/14]
View answerIn 2011 the new fitness and probity regime was rolled out by the Central Bank in accordance with the provisions of the Central Bank Reform Act 2010. The regime provides for new powers to be exercised by the Central Bank to ensure the fitness and probity of nominees to key positions within financial service providers and of key office-holders within those providers.
The fitness and probity regime came into effect on 1 December 2011 for all regulated financial service providers other than credit unions and was fully implemented by 1 December 2012. The regime for credit unions came into effect on 1 August 2013 and is due to be fully implemented by 1 August 2016.
The Central Bank fulfils its fitness and probity functions under the Central Bank Reform Act 2010 in respect of all proposed Pre-approval Controlled Functions (PCFs) by assessing applications for approval to the relevant roles within the regulated financial service provider. All assessments of fitness and probity of persons being proposed to PCF roles (and of persons performing controlled functions (CFs) are made with respect to the criteria set out in Section 25(3) of the Central Bank Reform Act 2010 and a Code issued by the Central Bank under Section 50 of the Act entitled "Fitness and Probity Standards (Code issued under Section 50 of the Central Bank Reform Act 2010).
The Central Bank may refuse to approve a proposed appointment to a PCF role where it is of the opinion that the proposed appointee is not of such fitness and probity as is appropriate to perform the relevant function. Where the Central Bank is minded to refuse a proposed appointment, a letter is issued to the proposing entity (and copied to the applicant) setting out the grounds for arriving at this preliminary opinion. The proposing entity and applicant are given adequate time to consider the preliminary opinion and respond to the Central Bank before a formal refusal would be issued. I have been informed by the Central Bank that it has been the general practice for the applicant to withdraw their application either without embarking on or prior to the conclusion of the refusal process. While withdrawals may arise as a result of a preliminary opinion of the Central Bank to refuse the application, they also arise in cases where an applicant's situation changes.
The following table outlines the number of applications for the years 2012, 2013 and to end-quarter 2, 2014. Figures for 2011 are not included as the fitness and probity regime only came into effect in December 2011.
|
- |
2012 |
2013 |
2014 (end-Q2) |
|
Applications processed |
2,658 |
2,912 |
1,198 |
|
Approved |
2,234 |
2,522 |
975 |
|
Returned as incomplete |
331 |
278 |
189 |
|
Withdrawn |
93 |
112 |
34 |
The Central Bank publishes figures annually on fitness and probity applications in its Annual Performance Statement.
