The Central Bank (Individual Accountability Framework) Act 2023

The Central Bank (Individual Accountability Framework) Act 2023 (“Act”) was finally enacted, on 9 March 2023, when the President of Ireland signed the relevant Bill into law.

This client briefing note summarises the main points of the Act. It should be read together with our separate client briefing note, Individual accountability: Preparing for the new regime below.

Importantly, the Act is largely a framework which grants the Central Bank of Ireland (“CBI”) relevant powers to adopt detailed implementing regulations and guidelines which will set out much of the detail of the requirements to be imposed on fi rms and individuals under the Act.

Accordingly, the main requirements of the Act will not come into force until some time after this consultation process has concluded.

This briefing note outlines a number of the key points of the Act, specifically relating to:

– the Senior Executive Accountability Regime (“SEAR”)

– the Conduct Standards

– changes to the existing Fitness & Probity regime

– changes to the existing Administrative Sanctions Procedure (“ASP”)

For further information on the Act, see our full client update here.

We can help you prepare effectively for the Central Bank (Individual Accountability Framework) Act 2023

Firms will need to devote significant resources and time to ensure that they prepare effectively for the new Act. For more information on what firms should be doing now to prepare for the Act, see our brochure below.

Brochure: Navigating legislation. Preparing for the new Individual Accountability Regime

We have a dedicated team of experts, from across our relevant areas of expertise (in particular, FS regulatory, employment law, litigation, corporate) to assist our clients prepare effectively for the new regime. We are ideally placed to guide you through this complex regime to ensure that you meet the requirements and expectations of the CBI.

Our Individual Accountability Regime Initial Implementation Steps offering

To assist firms with the initial steps of their implementation of this new regime, we are offering firms an introductory package of advices, for a specified price, that includes:

– presentation to your Board on the new regime

– separate meeting to advise on project planning for the implementation of the new regime

– meeting with our regulatory/employment law experts to discuss and advise on the specific employment/HR issues that might arise for you

If you would like further information on this package offering, please contact one of our contacts listed below or your usual Eversheds Sutherland contact.

Webinar

The Central Bank of Ireland published, for public consultation, its detailed draft implementing Regulations and Guidance under the new Individual Accountability Framework.

The CBI’s consultation document states that the conduct standards and Fitness & probity changes (including the new certification requirements) are expected to apply from 31 December 2023, and SEAR from 1 July 2024. Accordingly, firms need to prepare now for this major change to the regulation of financial services in Ireland.

In this webinar, on March 2023, our financial services regulatory experts, Ciaran Walker and Simon Collins, together with our employment law experts, Ben Conway and Sophie White outlined the key elements of the new regime and the issues in the CBI’s Consultation that firms and individuals need to be aware of now to prepare effectively for the new regime.

Click here to view a recording of the webinar