Central Bank of Ireland webinar on CP166

On 11 March 2026, the Central Bank of Ireland (the “Central Bank”) held a webinar to discuss its recent consultation CP166 - Consultation on Prohibition Notices Under the Fitness and Probity Regime and draft Prohibition Notices under the Fitness & Probity Regime Supplemental Guidance (the “Supplemental Guidance”).

Under the fitness and probity regime, the Central Bank may impose a prohibition, by way of a prohibition notice, on an individual performing a controlled function (including a pre-approval controlled function) where they do not meet the required standards of fitness and probity.

The webinar provided helpful insight into the Central Bank’s evolving approach to prohibition notices, how decisions are made, and the practical implications for regulated firms and individuals.

Key updates from the webinar

1. How prohibition notices are made

The Central Bank emphasised that two distinct units are involved in prohibition matters:

(i) the Enforcement Unit (“Enforcement”), which investigates and prepares the case; and
(ii) the Regulatory Decisions Unit (“RDU”), which independently oversees decision‑making.

In practice, the process runs as follows:

• Enforcement may open an investigation where there is reason to suspect an individual’s fitness and probity.
• Enforcement issues a draft investigation report. When the report is finalised, the matter then passes to the RDU.
• The RDU appoints an independent decision maker from the Regulatory Decisions Panel. The decision maker may then issue a preliminary decision proposing a prohibition, after which the subject can make further submissions before any final decision is reached.

A prohibition becomes effective once the individual agrees to it or, if they dispute it, once the High Court confirms it.

2. Nature, scope and duration of prohibitions

The Supplemental Guidance clarifies how a decision maker may frame a prohibition, including:

• Nature: outright prohibition or conditional prohibition (e.g., with requirements for training, enhanced supervision).
• Scope: limited to specific CFs/PCFs or firms, or applying across all CFs/PCFs and all regulated entities.
• Duration: fixed term (e.g. up to five years) or indefinite, with the possibility of later termination of the prohibition.

Decisions will be guided by a non exhaustive list of relevant circumstances, set out in the Supplemental Guidance, which include:

• extent to which the individual is not of such fitness and probity as is appropriate to perform the relevant CF/PCF role.
• degree of risk posed to the achievement of the objectives of the fitness and probity regime.
• previous supervisory, disciplinary, criminal and compliance record.
• length of time since the occurrence of relevant matters.
• individual’s behaviour since the occurrence of relevant matters.
• whether the individual has shown an understanding of any matters which indicated a lack of fitness and probity.
• personal circumstances of the individual.

3. Publication of prohibition notices

Publication of a prohibition notice is a separate decision to the imposing of a prohibition. The Central Bank may publish either:

• the full prohibition notice, or
• a shorter summary.

Publication will generally be considered necessary but may be withheld in exceptional circumstances (e.g., where there is an ongoing criminal investigation).

Published notices are published on the Central Bank’s website.

4. Termination and cessation

A prohibition ceases when:

• its term expires; or
• the Central Bank agrees to terminate it (for agreed prohibitions).
• Individuals may apply to the Central Bank or the High Court to have an agreed prohibition terminated, revoked or varied.

5. Subsequent PCF roles

Any individual seeking appointment to a PCF role after a prohibition ends must undergo a fresh IQ application, and the Central Bank may take the prior prohibition into account.

6. Q&A highlights

During the Q&A section of the webinar, the Central Bank addressed a number of practical issues, including:

• No automatic prohibitions: even in cases involving fraud, decisions are made on a case by case basis.
• Independence of decision makers: all decision makers are appointed to a statutory panel by the Minister for Finance, with strict conflict management processes.
• Input from firms on proposed prohibition: relevant firms may be allowed to engage during investigations or the prohibition process where necessary to ensure fairness.
• Conditions cannot be imposed without a prohibition: there is no mechanism to impose conditions on a standalone basis; any conditions must form part of a prohibition.
• Timelines for investigations vary case by case: efficiency is balanced with fair procedures.

Next steps

The Central Bank will:

• accept written submissions in response to the consultation until 25 March 2026, to be sent to: prohibitionsconsultation@centralbank.ie;
• assess responses from April to June 2026; and
• publish final guidance and a feedback statement around July 2026.

How we can help

Our Financial Services Regulation team advises firms and individuals on all aspects of fitness & probity, including investigations, prohibition processes, engagement with the Central Bank and PCF applications.

If you have any questions regarding the consultation or wish to discuss the implications of the proposed Supplemental Guidance, please contact a member of our team.