06/02/2026
Insights Blog

The Central Bank of Ireland (CBI) has published a Consultation Paper on Prohibition Notices Under the Fitness and Probity Regime (CP166).

The Fitness and Probity (F&P) Regime aims to protect the public interest by ensuring that individuals in senior and customer-facing roles in financial services firms are competent and capable, honest, ethical and of integrity, and financially sound. The F&P Regime has three key pillars, one of which sets out the obligations of financial services firms in relation to ensuring personnel meet the F&P standards, one of which requires financial services firms to obtain the approval of the CBI before appointing individuals to senior roles, and one of which relates to investigations.

The investigations pillar allows the CBI to investigate the F&P of individuals who are performing, or who previously performed, controlled function (CF) roles in financial services firms. At the end of an investigation (or, if there are undisputed facts than render an investigation unnecessary), if the relevant decision maker forms the opinion that the individual does not meet the required standards of F&P, the decision maker may impose a prohibition on the individual. Such prohibition prevents the individual from performing CF roles indefinitely or for a specified period. CP166 relates to the investigations pillar and sets out additional guidance (Supplemental Guidance) from the CBI in relation to their prohibition procedures. The Supplemental Guidance is to be read in conjunction with the existing Guidance on Fitness and Probity Investigations, Suspensions and Prohibitions (the Main Guidance), and is intended to be subsumed into the Main Guidance in due course.

The Supplemental Guidance sets out the circumstances that a decision maker will consider when determining the nature, scope and duration of a prohibition. A decision maker will consider the protective, public interest objectives of the F&P Regime, the “relevant circumstances” of the case, and the proportionality of a prohibition. Relevant circumstances include, but are not limited to:

  • the extent to which the individual is not of such F&P as is appropriate to perform the relevant CF role;
  • the degree of risk posed to the achievement of the protective objectives of the F&P Regime;
  • the previous supervisory, disciplinary, criminal and compliance record of the individual;
  • the 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 F&P; and
  • the individual’s personal circumstances.

The degree of risk to the public interest objectives of the F&P Regime will be a key consideration when determining a prohibition.

In terms of scope, the Supplemental Guidance highlights that a prohibition may forbid an individual from carrying out a relevant CF in relation to one or more specified relevant entities, one or more specified classes of relevant entities, or any relevant entity. In terms of duration, a prohibition can be imposed for a specified period or be of indefinite duration. A prohibition may also be imposed with or without conditions. A prohibition with conditions allows an individual to continue to perform the CF role provided they are in compliance with the CBI’s requirements. In determining the nature, scope and duration of a prohibition the CBI will consider the degree of risk to both the public and the stability of the financial system.

The Supplemental Guidance also includes guidance on the CBI’s approach to the cessation, termination and publication of prohibition notices. In terms of cessation, a prohibition notice will cease to have effect where the prohibition agreement is terminated by the CBI, the prohibition notice is revoked by the High Court, or the prohibition notice expires. The Supplemental Guidance explains the circumstances that the CBI will consider when it receives a request to terminate a prohibition agreement. These include: (i) the amount of time that has passed since the prohibition was imposed; (ii) any new, relevant and material information provided by the individual; and (iii) the relevant circumstances listed above. The CBI will not terminate a prohibition agreement if that would pose a risk either to the public or the stability of the financial system. The Supplemental Guidance notes that while the CBI can make an application to the High Court for an order revoking a prohibition notice, it will generally be for the relevant individual to make the application and satisfy the court.

Finally, the Supplemental Guidance highlights that the CBI may publish a prohibition notice, in particular in order to achieve the objectives of the F&P Regime to protect the public and the financial system.

CP166 is open for feedback until 25 March 2026. Please get in touch with our market-leading Financial Regulation and Financial Regulation: Investigation and Enforcement groups for practical guidance on your F&P queries.