27/11/2025
Insights Blog

The Central Bank of Ireland (CBI) has published:

See our previous insights posts here and here.

Feedback statement

In the Feedback Statement, the CBI clarifies its expectations and outlines the main revisions to the finalised Guidance. Key points from the Feedback Statement and the Guidance are as follows:

  • Temporary officers
    • Notwithstanding that firms should have adequate succession plans for prescribed pre-approval controlled functions (PCF), the CBI recognises that recruitment and market conditions can necessitate alternative arrangements in certain circumstances. As such, the Guidance now facilitates the appointment of a temporary officer to perform a PCF role by way of an arrangement agreed in writing with the CBI, for a period of up to six months upon certain conditions being satisfied.
  • Identifying the controlled functions (CF) population
    • The Guidance reaffirms that the CF designation is dependent on the functions performed, rather than job title or seniority, and should be assessed on this basis.
    • The CBI has re-confirmed that all PCF roles are also CF-1 roles, and may also be CF-2 roles depending on their compliance focus. However, dual classification does not introduce new requirements or expectations.
    • The CBI expects firms to appoint a Head of AML/CFT where such appointment is proportionate to the nature, scale and complexity of the firm’s activities.
  • Due diligence for PCF roles
    • The CBI expects that firms will carry out due diligence on a proportionate and best-efforts basis (noting, however, that the principle of proportionality cannot be applied in relation to probity). The CBI states that it will take into account the limitations of public records in this respect, and the Guidance highlights where supporting documentation can be self-certified.
    • Past matters will be considered when assessing an individual’s F&P. As a general rule, a 10 year look back is sufficient. However, exceptions are if there are aggravating circumstances, as well as criminal, civil or regulatory actions.
    • The reference to the need for the provision of “evidence of financial soundness” has been removed from the Guidance, with the CBI confirming that, in general, the absence of a judgment or default will suffice as evidence of this requirement.
  • F&P assessment considerations
    • As regards time commitments, the CBI expects that executive PCF roles will be carried out on a full-time basis, however they recognise that there are circumstances where this is not necessary or practical. As such, this default expectation has been removed from the Guidance. The CBI notes that firms should be in a position to explain why a full-time role is not necessary in these circumstances.
    • Firms must ensure that the CBI has access to key decision makers for effective supervision. In light of this, requests for persons performing PCF roles to reside outside the State will be assessed on a case-by-case basis taking into consideration the nature, scale and complexity of the firm and the PCF role.
    • On independence of mind, the CBI has clarified that firms are entitled to assume that a person sufficiently qualified and experienced to act as a board member has sufficient independence of mind to carry out the role, unless there is evidence to suggest otherwise.
    • The Guidance has been amended to allow for greater flexibility in the types of knowledge and experience considered appropriate when assessing an individual for a PCF role. The CBI has also reaffirmed its view that there can be circumstances where an individual who does not possess the required level of experience may still be considered fit and proper where there is an appropriate justification.
    • Finally, the CBI has clarified that the inherent responsibilities set out in Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Senior Executive Accountability Regime) Regulations 2024 (the SEAR Regulations) apply to all PCFs, notwithstanding the fact that the SEAR Regulations themselves only apply to a specific cohort of firms.

Surprisingly, the Guidance takes effect retrospectively, from 20 November 2025.

Review of the PCF 

In CP160, the CBI proposed a two-stage approach to the review of the list of prescribed PCFs; an initial targeted revision, and a substantive review in 2027. Stakeholders expressed a preference for a once-off revision to avoid the administrative burden of processing two sets of changes. As such, the CBI is proceeding with a small number of essential changes now (specifically, the removal of two roles, and the addition of a Head of Safeguarding role for payment institutions, e-money institutions and crypto asset service providers), and has reserved the substantive consultation and review for 2026/2027.