Central Bank urged to improve vetting process  following review 

The regulator, from 2020 to the end of 2023, approved around 11,000 individual roles in this sector. Pic: Shane O'Neill, Coalesce.

The Central Bank has been urged to improve its governance and fairness when appointing key individuals to roles in the financial services sector.

In a review undertaken by former chair of ECB Supervisory Board Andrea Enria into the Central Bank’s decade-old Fitness and Probity regime, 12 recommendations were given to ensure the regulator delivers “procedural fairness” in future. 

“There are clearly improvements we can make in the way we manage applications and come to a judgement on them,” said Central Bank governor Gabriel Makhlouf.

The regime was created with the aim of vetting candidates for top positions in the financial sector to check they are fit to carry out specific responsibilities.

The review was published after the Irish Financial Services Appeals Tribunal (IFSAT) found that the Central Bank’s procedures at the interview and decision stage of a 2021 application process were flawed which led to a decision by the regulator to refuse an individual’s application to two senior roles in a regulated financial services firm.

The regulator, from 2020 to the end of 2023, approved around 11,000 individual roles in this sector.

The review concluded that the conduct of the regime is broadly in line with peer regulators.

Meanwhile, chief executive at Brokers Ireland Diarmuid Kelly said the recommendations address "many concerns in respect of fairness, efficiency and transparency of process".

“It is important that the Fitness and Probity process does not act as a barrier to entry into the industry, a concern that has been prevalent among many of our members to date," he added.