Introduction
Following a consultation launched in January this year, the Central Bank of Ireland (Central Bank) has published its Supplemental Guidance on Prohibition Notices (Supplemental Guidance), together with a feedback statement.
The Supplemental Guidance complements the Central Bank’s existing Guidance on Fitness and Probity Investigations, Suspensions and Prohibitions (April 2023) (Main Guidance) by providing additional detail on prohibition notices, including information on:
- how the nature, scope and duration of a prohibition should be determined
- cessation of a prohibition notice
- termination of a prohibition agreement
- publication of a prohibition notice
The Supplemental Guidance should therefore be read together with the Main Guidance. It is effective from 30 July 2026.
In a previous client insight, we explained what a prohibition notice is, and when it may be imposed, and provided an overview of the draft Supplemental Guidance published for consultation.
In this insight, we discuss what changes have been made to the Supplemental Guidance following the consultation.
Changes to the Supplemental Guidance following consultation
The Central Bank has amended the Supplemental Guidance to reflect feedback received during the consultation period. It has also made several technical amendments to improve clarity and to align the Supplemental Guidance more closely with the legislative framework for fitness and probity (F+P).
The main changes introduced in the Supplemental Guidance are set out below.
When a prohibition may be imposed
- The Central Bank has included three pre-conditions that must be satisfied, in addition to other requirements, before a prohibition may be imposed. These pre-conditions are not new and are also referenced in the Main Guidance and section 43 of the Central Bank Reform Act 2010 (2010 Act). The pre-conditions are that:
- the individual and relevant entities have access to material taken into account by the decision-maker for the purpose of ensuring that the proposed prohibition is consistent and proportionate
- the individual and relevant entities have been afforded a hearing in relation to the proposed decision as is necessary to do justice in the circumstances
- the decision-maker is satisfied that imposition of the prohibition is necessary in the circumstances
Scope of a prohibition
- A prohibition may be imposed with or without specified conditions. The Central Bank has clarified that any conditions specified in a prohibition notice form part of the prohibition notice and, as a consequence, the obligation to comply with a prohibition notice includes the obligation to comply thoroughly with any conditions specified in the prohibition notice. It also clarifies that any failure to comply with a specified condition constitutes a failure to comply with the prohibition notice and may be the subject of enforcement action.
Determining a prohibition
- The Supplemental Guidance sets out in ‘Table 1’ (referred to as ‘Relevant Circumstances Guidance’) (Table 1) a list of factors which the decision-maker shall take into account, by reference to the facts of any particular case. These factors are non-exhaustive and include some key clarifications when compared to the Main Guidance.
- The legislative framework for F+P does not apply a cut-off period beyond which an individual’s previous record is deemed irrelevant. The decision-maker will assess this on a case-by-case basis. However, the Central Bank has clarified, in Circumstance C in Table 1, that the passage of time since the relevant previous record is a circumstance that may be taken into account.
- Circumstance E in Table 1 considers the individual’s behaviour (including rehabilitation or remediation) after any matter indicating a lack of appropriate fitness and probity. The Central Bank has included “relevant education or training undertaken or any restitution made” as examples of rehabilitation or remediation.
- Circumstance G in Table 1 considers the personal circumstances of the individual when determining the nature, scope and duration of a prohibition. While the Central Bank did not update the text of Circumstance G, it has noted, in the feedback statement, that the investigator and the decision-maker will consider any relevant health issues appropriately brought to their attention in light of the circumstances of each case, while observing the public interest in progressing and concluding F+P enforcement procedures, and the importance of protecting customers and the financial system from potential harm.
Oral hearings and submissions
- The Central Bank has updated the section on hearings. It confirms that the decision-maker must be satisfied that the individual, and any relevant entities, have been afforded a hearing in relation to the proposed decision as is necessary to do justice in the circumstances (repeating one of the pre-conditions mentioned above).
- The Supplemental Guidance also now states that if the decision-maker is minded to issue a prohibition notice, they will afford the individual, and any relevant entities concerned, an opportunity to make submissions.
- The processes and procedures for F+P investigations and prohibition procedures more generally, and particularly for oral hearings (including evidence), are currently under review. The Central Bank will engage with stakeholders on these in due course. The review follows the High Court judgment in Central Bank of Ireland v CD [2026] IEHC 203 in which the Court made several findings in relation to natural and constitutional justice and fair procedures in the context of an F+P investigation.
Publication of a prohibition notice
- The Central Bank has included additional information on the decision-making process for publishing a prohibition notice. Where the Central Bank proposes to publish a prohibition notice, it will write to the individual, and any relevant entity, to notify them of this proposal and invite them to make submissions on the matter of publication. The Central Bank will consider any submission received, including in relation to the personal circumstances and privacy considerations of the individual, before deciding on whether publication is necessary to achieve the purposes of Part 3 of the 2010 Act, subject to the Governor’s opinion.
- The Central Bank has clarified the factors it considers when deciding whether to publish a prohibition notice (although the factors were referred to in the draft Supplemental Guidance).
- It is also noted that appropriate redactions may be applied to a publication.
Assistance provided by firms
- In the feedback statement, the Central Bank states it expects firms to reasonably assist individuals subject to an F+P investigation by giving them access to information that will help them to engage with the Central Bank’s regulatory procedures where ownership of information lies with the firm rather than the individual. However, this is not specifically mentioned in the Supplemental Guidance.
Conclusion
While the final Supplemental Guidance does not materially alter the draft version, it provides some useful additional detail on how the Central Bank will approach prohibition decisions in practice, including publication of prohibition notices. Regulated firms should continue to ensure that their F+P processes, records and governance arrangements are sufficiently robust to support engagement with the Central Bank where issues may arise.
For further information on the Central Bank’s prohibition notice procedures or the F+P regime, please contact Dario Dagostino, Partner, Mark Devane, Partner, Chloe Culleton, Partner, Eoin O’Connor, Partner, Patrick Brandt, Partner, Eimear O’Brien, Partner, Louise Hogan, Partner, Sarah Lee, Senior Practice Development Lawyer or your usual ALG contact.
Date published: 5 August 2026
