6 things you need to know about the Individual Accountability Framework (IAF)

The Central Bank of Ireland has recently released regulations and guidance on the Individual Accountability Framework (IAF). Here are 6 things you need to know about the updated regulations:

  • What is the Individual Accountability Framework (IAF)? The IAF is made up of four different elements –
    1. Senior Executive Accountability Regime (SEAR)
    2. Conduct Standards
    3. An enhanced fitness & probity regime
    4. An amended Administrative Sanctions Procedure (ASP)
  • What firms are in the initial scope of SEAR? Firms within the initial scope of SEAR include –
    1. Credit Institutions (excluding credit unions)
    2. Insurance Undertakings (excluding reinsurance undertakings, captive (re)insurance undertakings and Insurance SPVs)
    3. Investment Firms which underwrite on a firm commitment basis and / or deal on own account and / or are authorised to hold client assets
    4. Incoming third country branches
  • What is the Management Responsibilities Map? Each in-scope firm must maintain a comprehensive Management Responsibilities Map that describes it management and governance arrangements. It should –
    1. Be maintained and legal entity / firm level
    2. Identify the individuals in PCF roles
    3. Describe the allocation of Prescribed Responsibilities and Other Responsibilities among PCF roles
  • How does SEAR interact with the existing Fitness & Probity regime? Following the implementation of SEAR, those seeking PCF approval will need to submit a Statement of Responsibilities alongside their Individual Questionnaire (IQ).
  • What are the Conduct Standards? There are three ‘sets’ of standards –
    1. Business Standards -> the CBI now has the power to prescribe standards which ensures that firms act with due skills, act honestly and in the best interests of consumers
    2. Common Conduct Standards -> these standards apply to all CFs (and PCFs). They act as a benchmark to guide individuals as to the standards of behaviour expected of them.
    3. Additional Conduct Standards -> these standards apply to individuals performing PCF roles and other individuals who exercise significant influent on the conduct of a firm
  • When does this come into enforcement?
    1. The Conduct Standards and enhancements to the Fitness & Probity Regime will become applicable on the 29th December 2023
    2. SEAR regulations that describe responsibilities of specific roles (CFs and PCFs) apply to in-scope firms from the 1st July 2024 and to (Independent) Non-Exec Directors from the 1st July 2025.

 

To learn more about the Individual Accountability Framework and CalQRisk, contact us today.

 

Recent News

6 things you need to know about the Individual Accountability Framework (IAF)

The Central Bank of Ireland has recently released regulations and guidance on the Individual Accountability Framework (IAF). Here ...
Read More

Paysend chooses CalQRisk as their Risk Management Solution

Paysend, a next generation integrated global payment ecosystem, has recently implemented the CalQRisk solution in order to enhance ...
Read More

ESG and Sustainability Reporting

The practice of businesses promoting sustainability and social responsibility in their operations can be traced back to the ...
Read More

CalQRisk Wins Best RegTech Solution at National Fintech Awards

CalQRisk, a leading provider of Governance, Risk & Compliance solutions has won the ‘Best Regtech Solution Award’ at ...
Read More

CalQRisk shortlisted in National Fintech Awards

The CalQRisk solution is shortlisted for ‘Best Regtech Solution Award’ at the inaugural National Fintech Awards. The National ...
Read More

CalQRisk shortlisted in 2023 CIR Risk Awards

Having won ‘Risk Management Product of the Year’ at the 2022 CIR Risk Management Awards, CalQRisk is now ...
Read More

From Risk Capacity to Risk Appetite

Risk Capacity is the maximum amount of risk that an organisation is technically able to assume before breaching ...
Read More

SMT automates their approach to Risk Management with CalQRisk

SuMi TRUST Global Asset Services (“SMT”), a subsidiary of Sumitomo Mitsui Trust Bank Limited, one of the largest ...
Read More

Digital Operational Resilience for the Financial Sector Act (DORA)

The Digital Operational Resilience Act (DORA) entered into force on 16th  January 2023. It outlines EU regulations for information ...
Read More
Database

8 Things to Consider in a Data Breach Response

A data breach can lead to reputational damage, financial losses and much more. By effectively preventing and investigating ...
Read More