On 30 July 2026, the Central Bank of Ireland (Central Bank) published a feedback statement (Feedback Statement) and supplemental guidance relating to prohibition notices under the Fitness and Probity regime (Supplemental Guidance).

This is the final step in CP166, a consultation commenced by the Central Bank in January this year, which focused on the prohibition procedure available to the Central Bank under the Fitness & Probity regime. The consultation invited comments on draft guidance providing additional clarity on how a decision is made to impose a prohibition, the nature, scope, and duration of a probation notice, and how a prohibition notice may be terminated (Draft Guidance). See our previous article here, which examines CP166 in detail.

In this article, we consider the key features of the Supplemental Guidance and the Feedback Statement.

Supplemental Guidance

The Supplemental Guidance is effective from 30 July 2026. It contains several key amendments to the Draft Guidance, informed by stakeholder feedback from the consultation process, as well as several technical amendments to align the text with the legislative framework.

The main changes introduced through the Supplemental Guidance are as follows:

• Determining a Prohibition – the Supplemental Guidance includes additional detail on when a prohibition may be imposed. This includes clarification that a person subject to an investigation (Subject) and relevant entities: (i) must be able to access material taken into account by the prohibition decision maker (Decision Maker) for the purpose of ensuring the proposed prohibition is consistent and proportionate; and (ii) be afforded a hearing in relation to the proposed decision where necessary. The Decision Maker must also be satisfied that imposing a prohibition is necessary in the circumstances.
• Relevant Circumstances Guidance – the guidance on relevant circumstances included in the Supplemental Guidance has remained largely unchanged. However, the Supplemental Guidance now clarifies that:
  • the weight given to such guidance will be determined by the Decision Maker by reference to the unique factual backdrop of each case; and#
  • the passage of time since a previous sanction or conviction of a Subject must be considered by the Decision Maker.
• Conditions to a Prohibition Notice – the Supplemental Guidance now emphasises that any condition imposed in a prohibition notice must be thoroughly complied with. Non-compliance could lead to enforcement action, including against the Subject.
• Hearing – The Supplemental Guidance now states that the Subject and relevant entities must be given an opportunity to make submissions when a Decision Maker proposes to issue a prohibition notice. The Decision Maker must be satisfied that the Subject and relevant entities have been afforded a hearing where it is necessary for the purposes of justice, having regard to the circumstances.
• Publication of a Prohibition Notice – The Central Bank has expanded the commentary in the Supplemental Guidance concerning the publication of prohibition notices. The purpose of publishing prohibition notices is now drawn out in further detail in the Supplemental Guidance, being to:
  • increase public and sector awareness of those who have been prohibited from performing controlled function (CF) roles;
  • mitigate the risk that a prohibited person may seek to avoid their prohibition;
  • prevent serious damage to the financial system, supporting the stability of the system and protect users of financial services;
  • inform stakeholders of the Central Bank’s regulatory expectations;
  • uphold and encourage standards in the financial services sector and related regulated entities; and
  • uphold public trust and confidence in the financial services sector and the financial system.

The Supplemental Guidance also outlines that the Central Bank will inform the Subject and relevant entities in writing to notify them of its intention to publish a prohibition notice. The Subject and relevant entities will be entitled to make submissions to the Central Bank before the final decision on publication is made. Submissions may address matters relating to personal circumstances and privacy considerations. A publication of a prohibition notice may also be redacted if appropriate to do so.

Feedback Statement

In addition to the changes introduced in the Supplemental Guidance, the Feedback Statement includes responses from the Central Bank to queries and suggestions raised in submissions to

CP166 from stakeholders. The following are some notable comments from the Central Bank in the Feedback Statement:

• Firms are not expected to apply enhanced due diligence to individuals who were previously Subject to a prohibition notice. Rather, firms must satisfy themselves in the usual manner that the individual complies with the Standards of Fitness and Probity, which should include consideration of the previous prohibition.
• The Central Bank has not committed to maintaining a centralised register of individuals performing CF roles.
• The Central Bank will consider including statistics for Fitness and Probity investigations actions in its next annual report.
• A Subject may include a statement of remorse or provide further insight into matters in their submissions to a proposed prohibition, which will be submitted to the Decision maker before a decision to impose a prohibition is made.
• The Central Bank expects firms to reasonably assist individuals by allowing them to access information that will help them engage with regulatory enforcement procedures.  The Feedback Statement also outlines the public interest in effective co-operation within the regulated financial services sector, timely resolution of regulatory investigations and the role that firms have to support these aims.
• Any relevant health issues experienced by the Subject that is brought to the attention of the investigator during the investigation stage and the Decision Maker during the decision-making stage must be considered.
• There is no automatic prohibition of an individual performing a CF role where that individual has been disqualified as a director under the Companies Act 2014.
• The average timeline of the prohibition process has been c.20 months. The timing, however, depends on several matters, including the complexity of the matter, the nature of the issues to be investigated and the level of cooperation with the Central Bank.

Next Steps

The Supplemental Guidance will, in time, be incorporated into the Central Bank’s main guidance on Fitness and Probity Investigations, Suspensions and Prohibitions (April 2023). Firms and those performing CF roles will likely welcome the clarifications made by the Central Bank to the process of determining, publishing and terminating a prohibition notice, and the mechanics of a prohibition.

While the process for CP166 has now concluded, the Central Bank remains focused on the topic of Fitness and Probity, particularly on matters relating to investigations and prohibitions. It is currently considering the implications of the recent judgment of the Central Bank of Ireland v CD (see our article here for details) on Fitness and Probity investigations, as well as the processes and procedures for oral hearings. The Central Bank intends to engage with stakeholders on these topics soon, which will likely mean that a further consultation on aspects of the Fitness and Probity regime will be released in the coming months.

For further information on this topic, please contact a member of our Insurance team.

Contributed by: Martha Ní Dhochartaigh