On 25 May 2021, the Central Bank published its enforcement action against James Cumiskey, former Managing Director of European Mortgage Call Centre Limited. The Central Bank has prohibited Mr Cumiskey from carrying out any controlled functions ("CFs"), including pre-approval controlled functions, in any regulated financial service provider, from 16 July 2020, for an indefinite period.
Susie Fitzpatrick senior associate: "One of the particularly interesting elements of this enforcement action was that during the Central Bank's investigation, it identified that Mr Cumiskey had outstanding debts and was not managing his own financial affairs in a sound and prudent manner, as is required by the fitness and probity ("F&P") Standards.
Those who hold controlled functions CFs, need to understand the importance of this finding when making the relevant annual confirmations pertaining to the F&P standards. More recently, on 10 June 2021, Derville Rowland, Director of Financial Conduct at the Central Bank launched the Central Bank's Fitness and Probity Interview Guide (the "Guide"). The publication of the Guide represents welcome clarity for candidates going through the pre-approval controlled function ("PCF") approval process. The Guide provides an overview of the PCF F&P interview process for candidates who may be interviewed as part of the Central Bank's assessment of their application, including what to expect on the day of the interview and what happens after an interview. Ms Rowland explained that the release of the Guide is part of the Central Bank's drive to bring increased transparency to its' processes. She went on to explain that interviews "play an important role in gathering information that cannot be obtained from desk-based reviews. PCF applicants should be well-prepared for an F&P interview and should not underestimate the robustness of the interview." Impacted firms should now update their F&P manuals and procedures to ensure potential candidates are aware of the contents of the Guide in their preparation for any such interview.
Ms Rowland also discussed in greater detail the importance of culture in financial services and the role which the F&P regime and the impending IAF and SEAR, play in achieving the right culture. The full text of Ms Rowland's speech is available here."
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