Central Bank ‘Dear CEO’ Letter re Fitness & Probity

On 8 April 2019 the Central Bank of Ireland (the “Central Bank”) published and circulated a letter addressed to Irish regulated financial service providers, including funds and fund service providers (“RFSPs”) regarding industry-wide shortcomings in RFSPs’ compliance with the Central Bank’s Fitness and Probity (“F&P”) regime (the “Letter”).

The key focus of the Letter is to highlight the Central Bank’s concerns over a lack of general awareness regarding the scope of the F&P regime and to highlight that RFSPs have significant compliance obligations (including ongoing obligations).

The Letter requires that:
  1. CEOs consider and discuss the Letter at board level (or nomination committee if relevant);
  2. CEOs and boards review the RFSP’s F&P policies and procedures and address any shortcomings; and
  3. CEOs and boards be in a position to demonstrate how the issues raised in the Letter have been considered by the RFSP and to explain and evidence any remedial actions taken. 

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