Central Bank (Individual Accountability Framework) Act 2023 signed into law

Almost five years after a Central Bank of Ireland ("CBI") report, which highlighted concerns relating to internal culture within Regulated Financial Service Providers ("Regulated Entities"), and following the Central Bank seeking extra powers to sanction individuals, the Central Bank (Individual Accountability Framework) Act 2023 (the "Act") has been signed into law by the President.
 
As noted in our previous updates tracking the progress of the Act, available here and here, the Act introduces the Senior Executive Accountability Regime ("SEAR"), with the aim of enhancing individual accountability in Regulated Entities.

We now await the commencement of the Act, by way of Statutory Instrument from the Minister for Finance.

As noted in our previous update, the Act introduces:

1. Updates to Standards of Conduct
2. Updates to the Fitness and Probity Regime
3. SEAR
4. Reform and Expansion of the Regulatory Powers of the CBI.

Following the passing of the Act into law, the CBI has launched a three month consultation on key aspects of the implementation of the Individual Accountability Framework, including the publication of draft Regulations and guidance.

The draft Regulations and guidance seek to provide clarity in terms of the CBI's expectations for the implementation of three aspects of the framework: SEAR, the Standards of Conduct, and certain aspects of the Fitness & Probity regime.

The consultation, draft Regulations, and draft guidance, are available here.

Please do not hesitate to contact James Roche, Eimear Burke, or Barry Fagan with any queries.