Implications of the Central Bank's fitness and probity for employees in arrears

[Brendan Burgess]

If an employee of a bank who is subjec to the fitness and probity regime applies for a PIA, can they continue to be considered "financially sound"?

[broken link removed]

How is this working in practice? I have heard of a bank using this clause to tell some senior employees that they could not apply for clearance from them because of their finances.

5. FINANCIAL SOUNDNESS
5.1 A person shall manage his or her affairs in a sound and prudent manner.
5.2 Without prejudice to the generality of paragraph 5.1, a person must be able to demonstrate that his or her role in a relevant function is not adversely affected to a material degree by the fact that one or more of the following may be applicable:
(a) the person has defaulted upon any payment due arising from a compromise or scheme of arrangement with his or her creditors or made an assignment for the benefit of his or her creditors;
(b) the person is subject to a judgment debt which is unsatisfied, either in whole or in part, whether in the State or elsewhere;
(c) the person is or has been the subject of a bankruptcy petition, whether in the State or elsewhere;
(d) the person has been adjudicated a bankrupt and the bankruptcy is undischarged, whether in the State or elsewhere; or
(e) a person was a director of an entity which has been the subject of insolvency.

 

[Palerider]

I am also aware of this in one high profile case that was the subject of a High Court Ex Parte application and was previously reported in the media, not sure how that one panned out but you raise an interesting point.

How many ex Bankers who retired or departed on severance are heavily indebted and now working for other Banks on a full or part-time basis when in arrears to that same new Bank employer..?

I know of one and when I heard I was genuinely astonished that the new Bank employer did not screen new employees to establish if they were already a customer. This person is heavily in arrears with them and they are on a contract without the Banks direct knowledge of their arrears and indebtedness. This Bank is chasing a guy who is non responsive when he actually works in the same building and is on the payroll ...whether by contract or direct I'm not sure but does it matter.

A freedom of information question to the State Banks might throw up some right chancers, Isn't the best place to hide always in open view, a great little country..

 

[44brendan]

The rules do apply but not to all bank staff. They apply to those in senior positions (CEO etc) and those in monitoring or controlling positions and interfacing with customers. I have come across cases where some staff in extreme financial difficulties were shifted from their existing roles as they did not pass the fitness and probity test. I have also come across one unfortunate member of staff who was sacked as he did not declare his financial difficulties to the Bank.
The rules are there and to my knowledge all banks have a policy of enforcing them. Obviously they can only do this where they are aware of the financial circumstances of staff. As from my earlier example tere are severe reprecussions on those who fail to disclose a major financial difficulty to the empolyer.

 

[Brendan Burgess]

I have also come across one unfortunate member of staff who was sacked as he did not declare his financial difficulties to the Bank. ...
As from my earlier example tere are severe reprecussions on those who fail to disclose a major financial difficulty to the empolyer.

brendan

That is very interesting. But where does it say that the employee must disclose their financial circumstances with their employer?

Is this a CB requirement?

Or was it in the employment contract?

It would not occur to me to advise someone working in a senior position in a bank that they should disclose their problems to their employer. Although I have told one that he would need to check out the Fitness and Probity requirements for himself.

 

[44brendan]

Our bank had a number of regional meetings with all staff required to attend. The requlations were clearly laid out as was the obligation to disclose any issues. This disclosure would not in itself be an issue for staff employment, but would give the Bank an awareness of a staff members unsuitability to fulfill certain roles. Failure to disclose would be a breach of contract (don't ask me exactly how!!). The actual circumstances of a breach are in reality where a person has not complied with a scheme of arrangement or is made bankrupt etc! i.e. the financial difficulties would need to be severe and the debtor is likely to have avoided all attempts to reach a solution.

 

[millieforbes]

Isn't financial conduct typically captured in Bank's Code of Conduct that staff are asked to re-affirm they adhere to each year? I guess a false declaration would be considered gross misconduct?