William Fry Podcast Series – Preparing for Individual Accountability
An insight into the William Fry five-part series on the forthcoming Individual Accountability Framework.

 

The Central Bank (Individual Accountability Framework) Bill 2022 aims to deliver the Central Bank of Ireland's objective of achieving greater transparency and individual accountability in the financial services sector. The Central Bank Individual Accountability Framework will enhance existing regulatory requirements under Fitness and Probity and introduce a new Senior Executive Accountability Regime. Early planning and preparing a clear implementation plan will best position your firm to meet the challenges of the new individual accountability framework. The legislation is expected to be signed into law in early 2023. To find out more about what the new regime means, listen to our 5-part series of brief podcasts below. 

Episode 1:  Background and Introduction to the Individual Accountability Framework (click here)

In this episode, Shane Kelleher, Head of Financial Regulation at William Fry, gives a background on and a high-level overview of the anticipated Central Bank Individual Accountability Framework. The new regime comprising four pillars, will apply to banks, insurers and other regulated financial service providers and involves a significant package of reforms designed to ensure clearer lines of individual accountability within regulated firms. 

Episode 2: Conduct Standards of the Individual Accountability Framework (click here)

In this episode, Derek Hegarty, a partner in Regulatory Enforcement, Litigation and Dispute Resolution at William Fry, discusses the conduct standards pillar of the anticipated Central Bank Individual Accountability Framework. Derek considers what practical steps regulated firms should take to best prepare for the proposed new conduct standards and warns of the potential consequences of a breach.

Episode 3: Enhanced Fitness and Probity Regime under the framework (click here)

In this episode, Louise Harrison, Employment Law partner at William Fry, discusses the core obligation of fitness and probity, specifically the proposed enhancements to the current fitness and probity regime under the anticipated Central Bank Individual Accountability Framework. Louise explains how the Fitness and Probity pillar is a refocus rather than a reform under the new regime. 

Episode 4: Senior Executive Accountability (SEAR) (click here)

In this episode, Shane Keller, Head of Financial Regulation at William Fry, provides an insightful perspective on the proposed SEAR, one of the most contentious pillars under the Central Bank Individual Accountability Framework. Unlike the other three pillars, SEAR will only apply to a subset of regulated firms in its initial phase. Shane discusses the obligations of impacted firms and senior executives and identifies some key actions that firms should take to best prepare. 

Episode 5: Enforcement Reforms & Wrap Up (click here)

In the final episode of our podcast series, Derek Hegarty, a partner in Regulatory Enforcement, Litigation and Dispute Resolution at William Fry, discusses the enforcement reforms proposed under the anticipated Central Bank Individual Accountability Framework. The Central Bank has existing powers to pursue enforcement action against individuals. Derek explains the differences under the proposed reforms intended to simplify how the Central Bank takes enforcement action against individuals. 

How can we help?

William Fry's experienced multi-disciplinary IAF/SEAR team is helping clients to prepare for and implement IAF and SEAR. Our team includes specialists in financial regulation, litigation and regulatory enforcement, employment, (re)insurance and fintech. We have vast experience in guiding regulated firms and senior executives in regulated firms through the most challenging regulatory implementation projects. We work with all stakeholders, including the Central Bank, through all stages of our clients' regulatory lifecycle. We also have extensive experience representing regulated firms and individuals in Central Bank investigations, inquiries and regulatory enforcement action, including the administrative sanctions procedure. 

We can help with the following:

  • Training on the four pillars of the IAF, including conduct standards for individuals and regulated firms, fitness and probity reforms, SEAR and individual enforcement reforms. 
  • Preparing statements of responsibility and responsibility maps by firms which fall within the scope of SEAR.
  • Preparing for the fitness and probity certification process.
  • Reviewing employment agreements and HR policies and procedures to take account of IAF and SEAR.
  • Advising senior executives and individuals in regulated firms on conduct standards for individuals, the duty of responsibility and SEAR.

If you wish to discuss this topic further, please contact any member of the William Fry Financial Regulation Unit or your usual William Fry contact.  

Contributed by Cliona Walsh & Catherine Carrigy

Key Contacts

Shane Kelleher Partner

Derek Hegarty Partner

Eoin Caulfield Partner

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