Michael McGrath (Cork South Central, Fianna Fail)
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Question 78: To ask the Minister for Finance if he will provide an update on the application of the Central Bank's fitness and probity regime to current executives working in the banking industry; the number and employment details of those currently being assessed under the new standards; and if he will make a statement on the matter. [17474/12]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank advise me that there has been no further developments of significance since this question was last responded to on 21st February, 2012. The Central Bank Reform Act 2010 provides for new powers to be exercised by the Bank to ensure the fitness and probity of nominees to key positions within financial service providers and of key office-holders within those providers. The new fitness and probity regime is being rolled out by the Central Bank through a code and regulations that were published on 1 September 2011. The regulations apply to Pre-Approval Controlled Functions and Controlled Functions.

The Central Bank regulations identify 41 senior positions as Pre-Approval Controlled Functions such as Chief Executive Officer, Director or Heads of Compliance, Risk, and Internal Audit. The regulations also prescribe specific categories as Controlled Functions and persons performing these functions include the staff who exercise a significant influence on conduct of the affairs of the financial service provider, monitor compliance or perform functions in a customer-facing role. The Central Bank have informed me that they are reviewing the position of executive and non-executive directors of covered institutions that received state support and who are remaining in director posts after 1 January 2012 to decide whether or not an investigation into any of those persons might be appropriate. This process provides opportunities for persons to make representations to independent decision makers appointed by the Central Bank. The Central Bank does not comment on individual cases.