What is a Pre-Approval Controlled Function (PCF)? 

I find clients often get confused by various acronyms used to refer to persons operating certain functions in the financial services industry. Who would blame them as they are often complex and technical terms. A person holding a PCF role at a Credit Union is typically either a CEO (Manager) or Chair. These are senior roles that require ‘Pre-Approval’ by the Central Bank before the person commences the role. It is a criminal offence for a person to commence a PCF role without the approval of the Central Bank. The individual is required to complete the Individual Questionnaire (IQ) on the Central Bank’s portal. This must be then signed off by a current in-situ PCF (i.e. Manager or Chair).

What is a Controlled Function (CF)?

This is not a senior role in a Credit Union and does not require ‘Pre-Approval’ by the Central Bank. Typically, a CF holder in a Credit Union is one of the following:

  • A person exercising a significant influence on the conduct of the affairs of a credit union; or
  • A person controlling or monitoring compliance of the obligations of a credit union.
PCFs are a sub-set of CFs which by virtue of the nature of the role require the preapproval of the Central Bank. PCF roles are performed by senior individuals in a regulated financial services provider.