I propose to take Questions Nos. 186 to 189, inclusive, together.
I have been informed by the Central Bank of Ireland that they are precluded under section 33AK of the Central Bank Act 1942, from disclosing information on individual financial service providers.
The Fitness and Probity Regime applies to regulated financial service providers. Under section 21(1) of the Central Bank Reform Act 2010 a regulated financial service provider shall not permit a person to perform a Controlled Function unless:
a) The regulated financial service provider is satisfied on reasonable grounds that the person complies with the Fitness and Probity Standards 2011 ("Standards"), and
b) The person has agreed to abide by the Standards.
A person to whom the Standards apply shall comply with them at all times. Specifically a person is required to be:
a) competent and capable;
b) honest, ethical and to act with integrity; and
c) financially sound.
The standards do not apply to persons performing functions with respect to a regulated financial service provider where that function is carried on by another person (e.g. outsourced) and all of the following conditions are satisfied:
a) there is in place a written agreement between the regulated financial service provider and the entity to which the function is outsourced, for the carrying on of that function; and
b) the entity to which the function is outsourced is a financial service provider who is regulated either the Central Bank of Ireland or another financial regulator in another jurisdiction.
Otherwise, the standards apply.
The meaning of Controlled Functions and Pre-approval Controlled Functions are set out in the Central Bank Reform Act 2010 (sections 20 and 22) Regulations 2011, S.I. No. 437 of 2011 as amended by Central Bank Reform Act 2010 (sections 20 and 22) (Amendment) Regulations 2011, S.I. No. 615 of 2011.
In determining whether an individual is performing a Controlled Function or a Pre-approval Controlled Function, regulated financial service providers should assess the role and functions of each individual in line with the definitions prescribed in the Regulations. The regulated financial service provider should consider the responsibilities of the specific function and determine the specific competencies expected of a person performing that specific Controlled Function. Pre-approval Controlled Functions are by definition also Controlled Functions.
The Central Bank have informed me that if a person performed a function in a regulated financial service provider, which if performed at present would be subject to fitness and probity standards, and that regulated financial service provider received State financial support, consideration shall be given to the competence and skills demonstrated by that person in that function and to the extent, if any, to which the performance of his or her function may have contributed to the necessity for such State financial support.
The Central Bank takes into account all relevant matters in its assessment of a person's competence and capability and this would include their performance, where appropriate, in a financial service provider which received non-Irish State financial support.