On 28 January 2026, the Central Bank of Ireland (Central Bank) opened a public consultation (CP166) on draft supplemental guidance (Draft Guidance) relating to prohibition notices issued under the fitness and probity regime (Consultation).

The Consultation has been issued by the Central Bank in quick succession to the CP160, which focused on new guidance for the fitness and probity regime and a review of the Pre-approval Controlled Function (PCF) list. For further information on CP160, please see here.

The Draft Guidance is proposed by the Central Bank against the backdrop of changes to the fitness and probity regime introduced by the Individual Accountability Framework. The aim of the Draft Guidance is to provide clarity on the prohibition procedures implemented by the Central Bank, in particular:

• how a decision to impose a prohibition is made;
• the nature, scope and duration of a probation notice; and
• how a prohibition notice may be terminated.

The Draft Guidance is intended to be read alongside the Central Bank’s Fitness and Probity Investigations, Suspensions and Prohibitions Guidance 2023 (Main Guidance), with a view to eventually consolidating all materials within the “Decision” chapter of the Main Guidance.

In this article, we consider the key elements of the Draft Guidance.

Determining a Prohibition Notice

The Draft Guidance clarifies how a decision maker will be appointed and the circumstances to be taken into account when making a decision to prohibit someone from performing a Controlled Function (CF) role.

A prohibition decision maker will be appointed from a regulatory decisions panel established by the Minister for Finance, which will consist of a mixture of external experts and Central Bank staff.

There are several factors that a decision maker must consider when deciding to issue a prohibition notice. Such factors include the following:

1. The extent to which the individual is not of such fitness and probity as is appropriate to perform the CF role
2. The degree of risk posed to the achievements of fitness and probity objectives
3. The previous supervisory, disciplinary, criminal and compliance record of the individual
4. The length of time elapsed since the occurrence of any matter indicating a lack of appropriate fitness and probity
5. The individual’s behaviour since the occurrence of any matter indicating a lack of appropriate fitness and probity
6. Whether the individual has demonstrated an understanding of matters indicating a lack of appropriate fitness or property
7. The personal circumstances of the individual.

Nature and Scope of Prohibition Notices

A prohibition will vary in terms of its scope, duration and types of conditions applied (if any). For example, an individual may be prohibited from performing a CF role in relation to one or more specified relevant entities, one or more specified classes of relevant entities or any relevant entity.

The Draft Guidance expressly states that the decision maker has a duty to act in a proportionate manner.

The scope and severity of the prohibition will be driven by the degree of risk posed to the fitness and probity objectives, i.e. the need to prevent serious damage to the Irish financial system, to ensure its continued stability, and to protect users of financial services. The duration of prohibition will also be determined relevant to these considerations. For example, a prohibition that poses a low risk to these objectives may be imposed for up to five years.

The Central Bank is also at liberty to impose conditions of prohibition as appropriate. A non-exhaustive list of example conditions that could potentially be imposed on a prohibition is included in the Draft Guidance. These may include:

• supervision of an individual in their performance of the CF role;
• a prohibition from performing a certain aspect of the CF role; or
• having to undertake specified training relevant to the CF role.

The Draft Guidance makes it clear that the Central Bank is not liable for any costs incurred for adhering to a condition(s).

When does a Prohibition Notice Take Effect?

The Draft Guidance specifies that a prohibition notice will become effective upon either:

• a written agreement between the Central Bank and the individual concerned; or
• following confirmation by the High Court of Ireland.

Regulated firms and individuals should be aware that the Central Bank may decide to publish a prohibition notice after it has been served on the individual or before it takes effect.  The Draft Guidance emphasises that publication of the prohibition notice serves the objectives of protecting the Irish financial system and users of financial services from risk, in particular the risk posed by the individual now prohibited, and of boosting public trust and confidence in the financial system.

Terminating a Prohibition Notice

The Draft Guidance outlines the three ways in which a prohibition notice may be terminated or cease to have effect, namely:

• termination of a prohibition agreement by the Central Bank;
• revocation of a prohibition notice by the Irish High Court; or
• the automatic expiry of a prohibition notice due to the passage of time.

The Draft Guidance aims to provide clarity on each ground of potential termination. Notably, where a prohibition notice is terminated, the related individual may apply to perform a CF or PCF role, including any such role which related to the prohibition notice. However, the Central Bank has outlined in the Consultation that a regulated firm must be satisfied that the individual is fit and proper to perform the role.

Next Steps

The fitness and probity regime is once again under the spotlight in this latest Consultation opened by the Central Bank. Industry stakeholders are invited to provide written feedback to the Central Bank on the Consultation by 25 March 2026.

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

Contributed by James O’Brien, Martha Ní Dhochartaigh