In advance of the Senior Executive Accountability Regime (SEAR) coming into force from 1 July 2024 (save in respect of non-executive directors, who will be brought into scope from 1 July 2025), the Central Bank of Ireland has updated and finalised the Guidance on the Individual Accountability Framework. Guidance is relevant to all four pillars of the Individual Accountability Framework (SEAR, the Fitness and Probity framework, the Conduct Standards, and the Administrative Sanctions Regime).
The changes to the draft published in conjunction with the Feedback Statement on CP153 in November 2023 are minimal.
The final SEAR Regulations have also been published as Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1) (Senior Executive Accountability Regime)) Regulations 2024. Changes from the draft Regulations published as part of CP153 in March 2023 are as signposted in the November 2023 Feedback Statement on CP153.
The Central Bank plans to issue the following shortly:
- Frequently Asked Questions to assist firms in their ongoing implementation of the Individual Accountability Framework.
- A system "How To" Guide for submitting IAF documentation.
Other ongoing IAF-related developments include:
- The consultation on the proposed Business Standards (this forms part of the Central Bank's wider consultation on planned changes to its Consumer Protection Code). Contained in a draft 'Standards for Business' Regulations, the Business Standards are divided into 'Standards for Business'and 'Supporting Standards for Business'. For more information, read our insights here: Individual Accountability Framework: Central Bank consults on Business Standards as part of CPC review – Arthur Cox LLP.
- The independent review commissioned by the Central Bank of its Fitness and Probity approval process. For more information, read our insights here: Fitness & Probity: Looking ahead to the independent review of the Central Bank's approval process – Arthur Cox LLP.
Please get in touch with your usual contact in our Individual Accountability and SEAR Group to discuss any aspect of the IAF and SEAR on your business.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.