Individual Accountability Framework – IAF
Tue Mar 28 2023
Following enactment of the Central Bank (Individual Accountability Framework) Bill 2022 on the 13th of March, the Central Bank of Ireland launched a three-month consultation on key aspects of the implementation of the Individual Accountability Framework (IAF), including the publication of draft Regulations and guidance.
The IAF comprises of the following key elements:
- Senior Executive Accountability Regime (SEAR) – Intermediaries are not in scope. It requires in-scope firms to set out where responsibility and decision-making lie within the firm’s senior management.
- Conduct Standards – These apply to all regulated firms. These are standards of behaviour expected of individuals carrying out Controlled Function roles within firms. They are basic standards such as acting with honesty and integrity, with due skill, care and diligence, and in the best interest of customers. Individuals performing Pre-Approved Controlled Function roles and individuals who exercise significant influence on the conduct of a firm’s affairs, will have Additional Conduct Standards related to running the part of the business for which they are responsible.
- Business Standards – Standards to be met by businesses, not just individuals. Currently such standards are set out in the Consumer Protection Code (the Code is currently under review).
- Enhancements to the current Fitness & Probity Regime – Certain modifications of the existing F&P Regime.
- Amendments to the Administrative Sanctions Procedure – New provisions that will govern the investigation, settlement, and Inquiry stages of the ASP. A key change will be the Central Bank’s ability to take enforcement action under the ASP directly against individuals for breaches of their obligations rather than only breaches committed by a firm.
The consultation will remain open for 3 months until the 13th of June 2023. A summary of the consultation paper is available in the following location in the compliance support section of the members website: Compliance-support/central-bank-codes-handbooks/Individual Accountability Framework – IAF. If members have any feedback please email email@example.com