Today, 9 March 2023, the President of Ireland has signed the Central Bank (Individual Accountability Framework) Bill 2022 (IAF Bill), and it has accordingly become law.
We now await publication of, and commencement orders in respect of, the Central Bank (Individual Accountability Framework) Act 2023 (IAF Act).
As highlighted in our last update, and as indicated by the Minister for Justice upon the passing of the IAF Bill by the Dáil last week, we expect that all sections of the IAF Act will be commenced as soon as possible, with the exception of sections 3 – 6 and section 10. These sections address the Senior Executive Accountability Regime (SEAR), the conduct standards and the fitness and probity 'certification requirement' respectively, and are expected to commence following completion of the Central Bank of Ireland's (CBI) public consultation on these matters. The Minister for Justice also indicated that the IAF Act will be fully implemented in the current year.
With the long-awaited IAF Act becoming law, it is essential that all regulated firms take steps now to assess the impact of the Individual Accountability Framework on their compliance and governance arrangements and business, together with steps to implement these wide-reaching reforms. Whilst SEAR will only apply to certain firms initially, all regulated firms should assess the implications of, and be preparing for, the introduction of the various conduct standards and the broader Individual Accountability Framework.
A&L Goodbody has been doing aforementioned preparations for, and assisting clients in respect of their implementation of, the Individual Accountability Framework and SEAR for some time. We will continue to publish insights as the IAF Act commences and the CBI guidance and consultation process develops.
As part of ALG's Regulatory Series, we will be holding a webinar on 30 March to update you on the latest expectations under SEAR and the IAF from the final legislation. Register your interest to attend HERE.