SEAR update: Central Bank (Individual Accountability Framework) Bill

The general scheme of the Central Bank (Individual Accountability Framework) Bill (the Bill), which will introduce SEAR into Irish law, was published yesterday, 28 July 2021. As anticipated, the Bill contains four main elements:

• The Senior Executive Accountability Regime (SEAR);
• Conduct Standards;
• Fitness and Probity Regime; and
• Enforcement, investigations and sanctions.

We have set out some details of the proposed SEAR below:

Timing: the Minister for Finance has said he hopes to have the new regime fully implemented within 12 to 18 months.

Scope: as anticipated, it is intended that SEAR will apply initially to:

• Credit institutions (excluding credit unions);
• Insurance undertakings (excluding reinsurance undertakings, captive (re)insurance undertakings and Insurance Special Purpose Vehicles);
• MiFID firms which underwrite on a firm commitment basis and/or deal on own account and/or are authorised to hold client monies/assets; and
• Third country branches of the above

We are currently reviewing the heads of the bill and will produce a detailed note shortly, in the meantime if you have any queries please do let us know.