Following enactment of the Central Bank (Individual Accountability Framework) Act 2023 on 9 March, the Central Bank of Ireland (CBI) has recently launched a three-month consultation on key aspects of the implementation of the Individual Accountability Framework (IAF), including the publication of draft regulations and guidance. Click here to find more information in CBI’s press release.
The draft regulations and guidance seek to provide clarity in terms of CBI expectations for the implementation of three aspects of the framework: the Senior Executive Accountability Regime (SEAR), the Conduct Standards and certain aspects of the enhancements to the Fitness & Probity regime.
The full consultation paper, draft regulations and draft guidance are available on the CBI’s website. For convenience the links are set out below:
Consultation Paper 153 Enhanced governance, performance and accountability in financial services Regulation and Guidance under the Central Bank (Individual Accountability Framework) Act 2023
draft Regulations
draft Guidance on the Individual Accountability Framework.
In relation to changes to CBI enforcement processes, the enhancements to CBI Fitness and Probity investigation, suspension and prohibition processes will be the subject of separate regulations and guidance which will be published once the underlying legal provisions have been brought into effect. As part of CBI’s phased plan, it will launch a second consultation in respect of changes to its Administrative Sanctions procedure later this year.
The Central Bank has included information on proposed implementation periods. It says that to ensure a focus by firms on high quality implementation of the framework, the following implementation period timelines are proposed:
Conduct Standards including accountability of senior individuals for running their parts of the business effectively to apply from 31 December 2023;
Fitness & Probity Regime - Certification and inclusion of Holding Companies to apply from 31 December 2023;
Regulations prescribing responsibilities of different roles and requirements on firms to clearly set out allocation of those responsibilities and decision making to apply to in-scope firms from 1 July 2024.
The consultation will remain open for 3 months from 13 March 2023 to 13 June 2023. Responses should be addressed to IAFconsultation@centralbank.ie. and the following subject heading should be included in the email. “Consultation Paper on the Individual Accountability Framework”.
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