Ireland to introduce Individual Accountability Regime

Recent speeches by the Central Bank of Ireland’s (the “Central Bank”) Director of Enforcement (August 2018) and the Director of Securities and Markets Supervision (September 2018) highlight proposals for the adoption of policy “reforms assigning responsibility to senior personnel” in regulated financial service providers (“RFSPs”) which will be modelled on the UK’s Senior Managers and Certification Regime (the “SMCR”).

The proposals target four areas of reform; (i) the introduction of high level standards of behaviour in the financial services industry, (ii) the establishment of a senior executive accountability regime, (iii) enhancements to the current Fitness & Probity regime (the “F&P Regime”) and (iv) the unification of the Central Bank’s enforcement process. The first, third and fourth proposals are to be applied to at all RFSPs, including investment funds and fund management companies regulated by the Central Bank. The second proposal for a senior executive accountability regime is intended, initially, to be limited in scope to banks, insurers and certain types of investment firms.

Although the Central Bank has acknowledged that the introduction and operationalisation of such reforms would be a “mutli-year project” these appear, nonetheless, to be a key regulatory focus for the Central Bank. As such, early familiarisation with the proposals would be advisable to allow for a considered implementation of the reforms in due course.

 

Click to view advisory