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  1. CP153 - Enhanced governance, performance and accountability in financial services - Regulation and Guidance under the Central Bank (Individual Accountability Framework) Act 2023
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Published date: 13 March 2023

CP153 - Enhanced governance, performance and accountability in financial services - Regulation and Guidance under the Central Bank (Individual Accountability Framework) Act 2023

Closed
13 June 2023
Comparing proposed amendment...
Executive Summary
Chapter 1: Introduction
Background and objectives
Central Bank Approach
Chapter 2: Cost Benefit Considerations
Legal Basis
Chapter 3: The Framework
Overview of key aspects
Senior Executive Accountability Regime (SEAR)
Conduct Standards
Enforcement
Interaction with the Fitness and Probity (F&P) Regime
Chapter 4: Implementation
Questions
Annex 1 Draft Regulations
Draft Senior Executive Accountability Regime (SEAR) Regulations
Introductory Text
Regulation 1 Citation and Commencement
Regulation 2 Scope
Regulation 3 Definitions
Regulation 4 Inherent Responsibilities
Regulation 5 Prescribed Responsibilities to be allocated by the firm
Regulation 6 Identification of Areas of Responsibility and Management Responsibilities Maps.
Regulation 7 Other Responsibilities to be identified by the firm, and allocated to PCF holder in the firm.
Regulation 8 Allocation
Regulation 9 Statement of Responsibilities
Regulation 10 Submission of information to the Bank
Regulation 11 Records
Schedule 1
Schedule 2
Schedule 2, Part 1
Schedule 2, Part 2 Prescribed Responsibilities in the application of proportionality to low impact in-scope MiFID Investment Firms
Schedule 2, Part 3 Incoming third country branches
Given under
Draft Certification Regulations
Introductory Text
Citation (regs. 1-2)
Regulation 1
Regulation 2
Regulation 3 Scope
Interpretation (regs. 4-5)
Regulation 4
Regulation 5
Regulation 6 Circumstances triggering a requirement to certify that a person is compliant with standards of fitness and probity, and the period of validity of such certification
Regulation 7 Procedures, systems and controls to be adopted and checks to be performed by regulated financial service providers and holding companies
Regulation 8 Record keeping
Regulation 9 Disciplinary Action
Reporting of information by regulated financial service providers or holding companies to the Bank in relation to their obligations (regs. 10-11)
Regulation 10
Regulation 11
Given under
Draft Holding Companies Regulations
Introductory Text
Regulation 1
Regulation 2
Regulation 3
Regulation 4
Regulation 5
Regulation 6
Regulation 7
Regulation 8
Regulation 9 
Regulation 10
Regulation 11
Regulation 12
Schedule 1 Controlled Functions in respect of Holding Company
Schedule 2 Pre-Approval Controlled Functions in respect of holding companies
Given under
Annex 2 Draft Guidance on the Individual Accountability Framework
Glossary of Terms
Part A (paras. 1.1-1.15)
Chapter 1 The Individual Accountability Framework (paras. 1.1-1.15)
1. The Individual Accountability Framework (paras. 1.1-1.15)
The Central Bank (Individual Accountability Framework) Act 2023 (paras. 1.1-1.4)
The Central Bank Regulations (paras. 1.5-1.10)
IAF Guidance (paras. 1.11-1.15)
Part B (paras. 2.1.1.-2.9.16.)
Chapter 2 Guidance on the Senior Executive Accountability Regime (paras. 2.1.1.-2.9.16.)
2. The Senior Executive Accountability Regime (paras. 2.1.1.-2.9.16.)
2.1 Introduction (paras. 2.1.1.-2.1.5.)
2.2 Scope (paras. 2.2.1.-2.2.3.)
2.3 Sharing/Splitting of Roles (paras. 2.3.1.-2.3.3.)
2.4 Responsibilities under the SEAR (paras. 2.4.1.-2.4.20.)
Inherent Responsibilities (paras. 2.4.1.-2.4.2.)
Prescribed Responsibilities (paras. 2.4.3.-2.4.10.)
Responsibilities in respect of NEDs and INEDs (paras. 2.4.11.-2.4.16.)
Other Responsibilities (paras. 2.4.17.-2.4.20)
2.5 Statements of Responsibilities (paras. 2.5.1.-2.5.13.)
Submission of Statements of Responsibilities to the Central Bank (paras. 2.5.3.-2.5.8.)
Information to be included within a Statement of Responsibilities (paras. 2.5.9.-2.5.11.)
Updates to and retention of the Statement of Responsibilities (paras. 2.5.12.-2.5.13)
2.6 Management Responsibilities Map (paras. 2.6.1.-2.6.17)
Submission of the Management Responsibilities Map to the Central Bank (paras. 2.6.4.-2.6.7.)
Preparation of the Management Responsibilities Map (paras. 2.6.8.-2.6.17)
2.7 The interaction between the Statements of Responsibilities and the Management Responsibilities Map (paras. 2.7.1.-2.7.6.)
2.8 Duty of Responsibility (paras. 2.8.1.-2.8.14.)
Introduction (paras. 2.8.1.-2.8.4.)
Compliance with the Duty (paras. 2.8.5.-2.8.7.)
Contravention of the Duty (paras. 2.8.8.-2.8.10.)
Reasonable Steps (para. 2.8.11.)
Enforcement - Administrative Sanctions (paras. 2.8.12.-2.8.14.)
2.9 Interaction between the Fitness and Probity Regime and SEAR (paras. 2.9.1.-2.9.16.)
Collective Decision Making (para. 2.9.1.)
Fitness and Probity Regime (paras. 2.9.2.-2.9.6.)
PCF Approval Process (paras. 2.9.7.-2.9.12.)
F&P Outsourcing Exemption (paras. 2.9.13.-2.9.16.)
Part C
Chapter 3 Reasonable Steps (paras. 3.1.-3.17.)
3. Reasonable Steps (paras. 3.1.-3.8.)
Considerations in determining whether reasonable steps were taken (paras. 3.9.-3.17.)
Guidance on the Conduct Standards
Chapter 4 Overarching Guidance on the Conduct Standards (paras. 4.1.-4.42.)
4. Overarching Guidance on the Conduct Standards (paras. 4.1.-4.42.)
Interaction with the Fitness and Probity Regime (paras. 4.8.-4.21.)
Guidance in relation to obligations on the firm in respect of Conduct Standards (paras. 4.22.-4.34.)
Reporting of disciplinary actions to the Central Bank (paras. 4.35.-4.42.)
Chapter 5 Common Conduct Standards (paras. 5.1.1.-5.6.6.)
5. Common Conduct Standards (paras. 5.1.1.-5.6.6.)
5.1 Introduction (paras. 5.1.1.-5.1.4.)
5.2 Acting with Honesty and Integrity (paras. 5.2.1.-5.2.6.)
5.3 Acting with Due Skill, Care and Diligence (paras. 5.3.1.-5.3.12.)
5.4 Cooperating in Good Faith and Without Delay (paras. 5.4.1.-5.4.5.)
5.5 Acting in the Best Interests of Customers and Treating Them Fairly and Professionally (paras. 5.5.1.-5.5.6.)
5.6 Operating in Compliance with Standards of Market Conduct and Trading Venue Rules (paras. 5.6.1.-5.6.6.)
Chapter 6 Additional Conduct Standards (paras. 6.1.1.-6.5.4.)
6. Additional Conduct Standards (paras. 6.1.1.-6.5.4.)
6.1 Introduction (paras. 6.1.1.-6.1.3.)
6.2 Additional Conduct Standard (a) (paras. 6.2.1.-6.2.7.)
6.3 Additional Conduct Standard (b) (paras. 6.3.1.-6.3.5.)
6.4 Additional Conduct Standard (c) (paras. 6.4.1.-6.4.4.)
6.5 Additional Conduct Standard (d) (paras. 6.5.1.-6.5.4.)
Part D
Chapter 7 Fitness & Probity Regime: Certification and Holding Companies (paras. 7.1.1.-7.3.2.)
7. F&P Regime: Certification and Holding Companies (paras. 7.1.1.-7.3.2.)
7.1 Introduction (para. 7.1.1.)
7.2 Certification (paras. 7.2.1.-7.2.32.)
Background - Existing obligations under the F&P Regime (paras. 7.2.1.-7.2.3.)
The certification requirement(s) (paras. 7.2.4.-7.2.7.)
Identification of CFs to which the certification requirement(s) will apply (paras. 7.2.8.-7.2.12.)
Forming the view that the individual meets the standards (paras. 7.2.13.-7.2.15.)
Frequency/conduct of the certification process (paras. 7.2.16.-7.2.17.)
Submission of data in relation to certification to the Central Bank (paras. 7.2.18.-7.2.19.)
Retention of data in relation to certification (paras. 7.2.20.-7.2.23.)
Responsibility for and compliance with the certification process (paras. 7.2.24.-7.2.27)
Material changes or concerns regarding fitness and/or probity (paras. 7.2.28.-7.2.30.)
Breach of Section 21 of the 2010 Act (paras. 7.2.31.-7.2.32.)
7.3 Holding Companies (paras. 7.3.1.-7.3.2.)
Appendices
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
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