IAF update: Seanad committee stage of the IAF Bill

As previously highlighted, the Central Bank (Individual Accountability Framework) Bill 2022 (IAF Bill) recently passed second stage before the Seanad. The IAF Bill progressed to committee stage before the Seanad last week, where a number of proposed amendments were tabled for consideration. We set out below the amendments considered together with key issues raised upon debate, and next steps.

Seanad debate commentary

The only amendment agreed in the Seanad was a Government amendment to ensure that inquiry decisions made post-commencement of the IAF Bill by existing inquiries (i.e. inquiries established pre-commencement) are subject to the new, Zalewski informed, appeal and court confirmation processes.

The most lengthy debate concerned two proposed amendments, moved by Senator McDowell, concerning:

  • a 'duty of full disclosure' on the Central Bank of Ireland (CBI) in respect of an investigation and/or proceedings concerning a natural person
  • an obligation on the CBI to provide legal assistance to a natural person, where the interests of justice so require; neither of these proposed amendments were agreed

Interestingly, the key issues previously raised before the Dáil and the Seanad of training required by firms, the six-year look back period in respect of investigating the fitness and probity of a controlled function holder, and discontinuance of an investigation for reasons of resources, were not directly raised in the debate. However, the Minister of State at the Department of Finance, Deputy MacNeill, did indirectly address two of these issues when answering Senator McDowell's proposed amendments. In particular, she highlighted:

  • The six-year look back period for fitness and probity investigations was chosen based on the Statute of Limitations, but it is really about preventing what has been a practice of strategic resignations to avoid an individual from avoiding investigations into the their fitness and probity simply because they have resigned.
  • The IAF Bill provides that the CBI must provide reasons for discontinuing an investigation in respect of a person and that one of these reasons is that the investigation is discontinued for reasons of resources.  Deputy MacNeill clarified that 'resources' in this context can refer to financial resources of the CBI but also the availability of specialist investigators. Deputy MacNeill was of the view that it is conceivable the CBI might wish to divert those resources to an issue perceived as more important or urgent, and the CBI should have the discretion to do that.  

Next steps

The IAF Bill is now scheduled for report and final stages before the Seanad on 22 February 2023. Following this, the IAF Bill will go back before the Dáil for approval of the above-mentioned amendment, and thereafter to the President for signing. We are still expecting enactment of the IAF Bill in March 2023.

A&L Goodbody has been preparing for, and assisting clients in respect of their implementation of, the IAF and SEAR for some time. We will continue to publish insights as the legislation, guidance and CBI consultation process develops. 

Visit our Individual Accountability Framework webpage for further materials, practical guides and thought leadership on this important topic.

For further information on the IAF and SEAR, and how ALG can assist your business, please contact Dario Dagostino, Partner, Mark Devane, Partner,  Patrick Brandt, Partner, Christopher Martin, Of Counsel, Sian Langley, Knowledge Lawyer, Duncan Inverarity, Partner, Noeleen Meehan, Partner, Michael Doyle, Partner, James Grennan, Partner, Laura Mulleady, Partner, Sinéad Lynch, Partner, Emma Martin, Of Counsel, Kerill O'Shaughnessy, Partner, Charlie Carroll, Partner, Gillian McDonald, Partner. Or your usual contact on the ALG SEAR team.

Date published: 20 February 2023