What is a Prohibition Notice?
In response to the banking failures during the 2008 global financial crisis, the Central Bank of Ireland introduced a ‘fitness and probity’ framework under the Central Bank Reform Act (2010).
These new laws in effect created a mechanism aimed at safeguarding the public interest and which would bolster trust and confidence in the financial system.
At the centre of this new governance architecture were three pillars: – (a) Regulated Firms (‡), which maintain internal standards; (b) the Central Bank’s ‘Gatekeeper’ Role, which pre-vets candidates for key roles; and (c) the Investigations function. It is this third pillar which we will address in this explainer.
As the title suggests, its role is to manage the investigative and enforcement powers of the Central Bank (and the European Central Bank) (§). Primarily, this work focuses on the ongoing assessment of fitness and probity credentials for previously approved applicants.
In short, should the investigative arm of the Central Bank determine that a person has become so diminished as to now lack the necessary competence, integrity, and/ or ethical behaviour required for their role, it may issue a Prohibition Notice reflecting their new stance.
Why might someone conduct a search for Prohibition Notices?
As part of this new ‘fitness and probity’ ecosystem, a legal apparatus was also introduced with the intention on ensuring that individuals in key roles and those interacting with customers (Controlled Functions (CFs) (*) and Pre-Approval Controlled Functions (PCFs) (†) were competent, honest, ethical, of strong integrity, and financially sound
In practical terms, the Act requires that candidates for these sensitive positions complete an online Individual Questionnaire (IQ), with a proposing ‘Regulated Firm’ then endorsing and submitting the completed IQ electronically to the Central Bank for review.
However, should applicants then be approved by the Central Bank’s ‘Gatekeeper’ function, the duty of this investigative pillar was to maintain an active watching brief to ensure that post-approval standards do not wain.
Accordingly, the Central Bank of Ireland maintains a public register for ‘Disqualification, Suspension and Prohibition Notices’ against named individuals.
Given that such notices are legally binding, this public censuring as such directly impacts the hiring potential of a candidate, flagging as it does any past indiscretions. Moreover, for those applicants that have been sanctioned to an indefinite period, it effectively prevents any possibility of their being engaged in a significant financial role.
Thus, both the oversight and enforcement powers inherent in the Central Bank of Ireland make it a legal requirement for Regulated Firms to conduct Prohibition Notice searches for key positions in their organisations.
How might someone request a search for Prohibition Notices?
Prohibition Notice searches are generally straightforward, typically conducted using a first name, last name, and ideally with an address or previous role in a firm (if known).
The reason we request the addresses or roles is to help distinguish between potential multiple matches for popular names, such as John Smith. Without this detail, it can be an issue to pinpoint the correct prohibited person.
What might a Prohibition Notice Search show me?
A Prohibition Notice (if a match is identified) will provide a Last Name, First Name, Associated Address or Role in a firm, the matter of concern which gave rise to an investigation, the prohibition notice’s duration, the effective date of the notice, and the published date of the notice.
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List of related searches:
- Company Directorship Search
- Disqualified / Restricted Directorship-searches
- Judgment (Debt/Money) Searches
- Bankruptcy searches
- Insolvency Searches
* Controlled Functions (CFs) – Click Here to Read More
† Pre- Approval Controlled Functions – Click here to Read More
‡ Regulated Financial Service Providers (RFSP) – Click here to Read More
A regulated firm must ensure that it “acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market.”
§ ‘The European Central Bank (‘’the ECB’’) is responsible for making decisions on fitness and probity applications to the management board of significant credit institutions and applicants to the management board of all credit institutions applying for authorisation. Individual applications to these management board positions must be submitted to the ECB using the IMAS Portal.’ – Click here https://www.bankingsupervision.europa.eu/framework/portal/imas/html/index.en.html