The Central Bank will have a centralised fitness and probity (F&P) unit set up and running by the end of the year.
It will also have new processes and decision making in place which will be clear, timely, transparent, consistent and robust.
That's according to the bank’s Governor, Gabriel Makhlouf, who said the processes will be strong and fair and support supervisory judgement "at the gate".
"And next year we will also be publishing consolidated and enhanced guidance on F&P standards," Mr Makhlouf told attendees at the Financial Services Ireland annual dinner.
The changes follow recommendations made by the former chair of the ECB’s Supervisory Board, Andrea Enria.
He was commissioned by the Governor to conduct an independent review of the bank’s F&P process.
That followed a decision by the Irish Financial Services Appeals Tribunal, which criticised the regulator’s decision to refuse to approve a finance executive for a board position in an Irish fund.
The tribunal found that Central Bank’s decision-making process was flawed and denied the appellant fair procedures.
The bank accepted all of the recommendations made in the Enria report and Mr Makhlouf said they are now being implemented at pace.
The Fitness and Probity Regime ensures people in senior positions in regulated companies meet high standards of competence, integrity and honesty expected of them.
Mr Makhlouf also told attendees at tonight’s event that the consensus of the financial services sector that it is in the sector’s interest that it is both well-run and well-regulated is at risk of slipping.
"And rather than progressing by securing stable growth, we risk regressing into the mistakes of the past," said Mr Makhlouf.
"You won’t be surprised to hear from me that if a trustworthy and resilient financial sector is in all our interests, then calling for lighter regulation or for lower standards or indeed howling at the moon of no regulation at all is in no-ones’ interests."
He added that while he recognises the importance of competitiveness, financial deregulation is not the answer and the story of our recent past shows this.
"Driving growth through 'lighter touch’ financial regulation failed," he said.
"Rather than delivering better growth it led to one of the most growth destructive events of the last century."
He added that the idea that regulation and growth are mutually exclusive is one he wholly disagrees with.
"Rather than being in conflict, good growth and good regulation are in fact complementary," the Governor stated.
