Central Bank of Ireland Fitness & Probity Performance Report H1 2024

Assessment Timeframes

The CBI aims to approve PCF applications within 90 calendar days. During H1 2024, 80% of all PCF applications were approved within 90 calendar days. The average processing time was 53 calendar days, with the shortest period for assessment being 1 day and the longest period for assessment being 343 days.

There are two types of PCF applications:

1. those related to positions within existing authorised firms, and
2. those that relate to new firm authorisations.

For PCF assessments which are part of a new firm authorisation, the PCFs are not approved until the firm is authorised. In the majority of these cases, the firm authorisation takes longer than 90 days and therefore the corresponding PCF approvals take longer than 90 days.

PCF Applications Not Linked to Firm Authorisation

• Approval Rate: 96% were approved in less than 90 calendar days. 
• Average Approval Time: 28 calendar days. 

PCF Applications Linked to Firm Authorisation

• Approval Rate: 14% were approved within 90 calendar days.
• Average Approval Time: 131 calendar days.

Total CBI F&P Activity

The activity levels for H1 2024 are summarized below:

• PCF Applications Received: 1,521 
• PCF Approvals Granted: 1,311 (Note: some approvals relate to applications received in 2023) 
• PCF Applications Returned as Incomplete: 165
• PCF Applications Withdrawn by the Firm: 59
• Number of Interviews Conducted as Part of PCF Assessments: 34
• PCF Refusals: 0

Key Takeaways

This report serves as a valuable resource for understanding the current landscape of PCF application processing and the CBI’s ongoing efforts to enhance its F&P regime.

• Approval Times for Non-Firm Authorisation Applications: The CBI has demonstrated efficiency in processing PCF applications not linked to firm authorisations, with a 96% approval rate within the 90-day target.
• Replacement PCF Candidates Should be Identified Promptly: From time to time, it is necessary to replace PCF role holders. Where this is not linked to an authorisation application, it is taking on average 28 calendar days for the CBI to process such applications. While notice periods for PCF roles should generally be longer than this period, the processing period demonstrates the need to identify replacement PCF role holders as soon as possible once an existing PCF role holder hands in his or her notice.
• Challenges with Firm Authorisation Applications: PCF applications linked to firm authorisations face longer approval times, primarily because these applications cannot be approved until the firm itself is authorised. This process often exceeds the 90-day target, resulting in only 14% of such applications being approved within the desired 90 day timeframe. This demonstrates the need for firms going through the application process to identify PCF candidates as soon as possible.
• Increased use of Interviews: The CBI is increasingly using interviews as part of its P&F assessment process. This is particularly the case with those seeking to hold senior roles in entities seeking authorisation. It is essential that candidates attending such interviews are sufficiently prepared for the interview.
• No Refusals: The CBI did not refuse any PCF applications in H1 2024. However, 59 applications were withdrawn. While there may be multiple reasons behind a withdrawal, one reason behind withdrawals is the possibility that the CBI has raised concerned about the proposed candidate. This emphasises the need for candidates to be carefully chosen and for the firm to be satisfied as to the person’s F&P before submitting a PCF application.

How Can McCann FitzGerald LLP Help?

McCann FitzGerald LLP is a premier law firm in Ireland and advises on the full range of legal matters.  We have experience in guiding applicants through a variety of CBI authorisation processes and in helping clients to comply with their legal obligations, including on F&P matters, once authorised. In addition, we offer assistance with candidates called for interview by the CBI as part of the F&P process. If you are considering applying for authorisation in Ireland, or proposing a new PCF role holder, please contact us for further information as to how we can help.