On 16 April 2024, the Central Bank of Ireland (Central Bank) published the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Senior Executive Accountability Regime)) Regulations 2024 (SEAR Regulations), representing the final step to implement the Individual Accountability Framework (IAF) in Ireland.
As expected, the Regulations, will apply to all pre-approval controlled functions (PCFs) of in-scope firms from 1 July 2024, except for non-executive directors and independent non-executive directors (I/NEDs), in whose case the Regulations will apply from 1 July 2025.
The Central Bank also published its IAF Guidance in final form, and will issue an ‘FAQ’ document to assist firms with their on-going implementation of the IAF within their businesses, together with a ‘How To Guide’ to provide information on submitting IAF-related documentation.
The majority of the changes to the SEAR Regulations are minor, save for the insertion of section 6(5), which requires a low impact investment firm to allocate certain prescribed responsibilities (PR4, PR9 and PR11) only to a PCF holder that is specified in Schedule 1A of the Regulations, i.e. an INED or NED, chairperson or chairs of the audit, risk, remuneration and nomination committees.
Visit our Individual Accountability Framework hub for further materials, including our 'IAF and SEAR Guide', and thought leadership on this important topic.
For further information on the Individual Accountability Framework and Fitness & Probity and how ALG can assist your business, please contact Dario Dagostino, Partner, Mark Devane, Partner, Patrick Brandt, Partner, Chloe Culleton, Partner, Sarah Lee, Senior 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 or your usual contact.
