CBI Updates 2017

Key dates

1 December 2011

- Fitness and Probity regime effective; Merrion's breach period begins

Late 2014 Deadline

- Management buy-out and new Board appointed; initial compliance improvements start

24 April 2015

- Merrion implements first written F&P policies and procedures

2016

- CBI inspection identifies breaches

12 December 2017

- CBI imposes €200,000 fine and reprimand via settlement agreement; investigation closed

Suggested considerations

• Develop/improve written policies and procedures for initial and ongoing due diligence on CFs/PCFs, including centralized records per individual.
• Conduct thorough due diligence at appointment and continuously monitor compliance with F&P Standards; maintain demonstrable records.
• Ensure accurate CF/PCF classification for all relevant roles (e.g., executive directors, finance heads, client advisors).
• Implement monitoring systems to detect changes in fitness/probity and report to CBI if Standards are breached.
• Board-level oversight: Review and remediate gaps, as post-2016 Merrion Board did.

What changed

• This 2017 enforcement does not introduce new regulatory changes but enforces existing requirements under the F&P regime, established via the Central Bank Reform Act 2010 and effective from 1 December...
• Firms must maintain adequate systems and procedures for initial and ongoing due diligence to ensure CFs/PCFs meet F&P Standards (fitness: competence, integrity; probity: honesty).
• Ongoing monitoring beyond initial checks, with written records and centralized documentation for each individual.
• Accurate classification of roles as CFs/PCFs; failure here constituted a breach. No subsequent statutory changes are noted in the publication, but it reinforces that firms bear ultimate...