RDJ SEAR Information Hub
About this Information Hub
Welcome to the RDJ SEAR Information Hub where you will find in one location all of the key pieces of information regarding the Senior Executive Accountability Regime (SEAR) and the Individual Accountability Framework. The information contained in the Hub has been distilled to make it easier for you to pinpoint the most relevant sources on this topic. We will be updating the Hub to reflect new SEAR-related developments. Bookmark the page so you can stay up-to-date.
SEAR in Brief
The anticipated Senior Executive Accountability Regime (SEAR) is expected to form one part of a package of reforms that are set to be introduced under the much-anticipated Central Bank (Amendment) Bill as part of what is termed the Individual Accountability Framework.
The Bill will implement reforms in four key areas:
- New Senior Executive Accountability Regime
- New Conduct Standards
- Enhanced Fitness and Probity Regime
- Breaking the participation link in enforcement actions.
For more information on SEAR, read the latest RDJ Insight here
Update - 1 September 2021
In recent weeks the Government published the General Scheme or draft version of the long-awaited Central Bank (Individual Accountability Framework) Bill which will introduce a number of new measures that are intended to greatly enhance the ability of the Central Bank of Ireland to hold individuals within financial services firms to account for their actions.
The provisions of the draft legislation are considered in detail in the RDJ Guide to the General Scheme of the Central Bank (Individual Accountability Framework) Bill which can be accessed here.
Draft SEAR Legislation
Date | Title | Link | Notes |
27 Jul 2021 | General Scheme of the Central Bank (Individual Accountability Framework) Bill | https://assets.gov.ie/180083/8175a004-8e41-4e76-b09d-d6ee8ab72506.pdf |
The draft legislation provides for: 1. The introduction of a Senior Executive Accountability Regime (SEAR); 2. The introduction of conduct standards; 3. Enhancements to the Fitness & Probity Regime; 4. Breaking the “Participation Link”. |
27 Jul 2021 | Regulatory Impact Assessment - Central Bank (Individual Accountability Framework) Bill | https://assets.gov.ie/180086/b0c689f0-6577-4b25-9db6-6f6e4e811ee5.pdf | Assesses the elements of the proposed Individual Accountability Framework. |
CBI Authored Documents
Date | Title | Link | Notes |
Jul 2018 | Report on “Behaviour and Culture of the Irish Retail Banks" | Behaviour and Culture of the Irish Retail Banks (centralbank.ie) | This Report represents one of the better and more detailed accounts of the likely elements of the proposed Individual Accountability Framework of which the Senior Executive Accountability Regime forms part. Elements or proposed reforms addressed in this Report include:
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Dec 2017 | Central Bank of Ireland Response to the Law Reform Commission Issues Paper “Regulatory Enforcement and Corporate Offences” | Initial references to the need for an individual accountability regime to be modelled on UK SMCR (p.7 & 8). Other potential initiatives/areas for reform:
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Central Bank Speeches
Date | Title | Link | Notes |
14 Feb 2021 | Speech by Deputy Governor Ed Sibley entitled “Governance and risk in a time of uncertainty and change” | Address discusses the proposed new Individual Accountability Framework and speaks to the 4 elements of that, those being:
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31 Oct 2019 | Speech by Director General Derville Rowland entitled “The Senior Executive Accountability Regime: Our Expectations of Firms” | Address which specifically focuses on the CBI’s plans for an enhanced level of individual accountability. Topics addressed include:
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22 Oct 2019 | Speech by Derville Rowland, Director General entitled “The Case for the Senior Executive Accountability Regime” | Address which focuses on the CBI’s plans to increase the level of individual accountability. Address outlines the 4 elements of the proposed Individual Accountability Framework. | |
2 May 2019 | Speech by Derville Rowland, Director General entitled “The Senior Executive Accountability Regime: The Central Bank’s Expectations and Insights for Boards” | Address which outlines the key aspects of the proposed elements of the Individual Accountability Framework. |
Ministerial Speeches
Date | Title | Link | Notes |
31 Oct 2019 | Speech by Minister Pascal Donohoe to Kobn Conference on the proposed Senior Executive Accountability Regime (SEAR) in the Central Bank (Amendment) Bill 2019 |
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18 Jun 2019 | Minister Donohoe to progress Central Bank (Amendment) Bill 2019 the aim of which is to improve transparency and accountability in the financial sector | Press release of the Minister for Finance confirming Government approval to begin the process of drafting heads of a Central Bank (Amendment) Bill. |
Parliamentary Debates
Date | Title | Link | Notes |
22 Apr 2021 | Dáil Parliamentary Question (Written) | https://www.oireachtas.ie/en/debates/question/2021-04-22/26/#pq_26 | Department of Finance officials continuing their engagement with the Attorney General's Office in advance of submitting draft heads of Bill to Government so as to ensure that the correct balance is struck between appropriate additional powers for the Central Bank and the protection of individuals' constitutional rights. It is expected that the Heads of Bill can be published in July 2021. |
21 Apr 2021 | Dáil Parliamentary Question (Written) | https://www.oireachtas.ie/en/debates/question/2021-04-21/532/#pq_532 | Department of Finance officials are engaging with the Attorney General's Office. |
31 Mar 2021 | Dáil Parliamentary Question | https://www.oireachtas.ie/en/debates/question/2021-03-31/52/ | Statement by Minister Pascal Donohoe on SEAR and other aspects of the individual accountability framework |
9 Mar 2021 | Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach |
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3 Mar 2021 | Dáil Parliamentary Question (Written) | Statement by Minister Pascal Donohoe on status of the proposed legislation underpinning SEAR | |
4 Feb 2021 | Dáil Parliamentary Question (Written) | https://www.oireachtas.ie/en/debates/question/2021-02-04/42/ | Statement by Minister Pascal Donohoe on status of the proposed legislation underpinning SEAR |
27 Jan 2021 | Dáil Parliamentary Question (Written) | Statement by Minister Pascal Donohoe on status of the proposed legislation underpinning SEAR | |
26 Nov 2020 | Dáil Parliamentary Question (Written) | https://www.oireachtas.ie/en/debates/question/2020-11-26/95/ | Statement by Minister Pascal Donohoe on SEAR and other aspects of the individual accountability framework |
UK
Date | Title | Link | Notes |
Dec 2020 | PRA Report on the Evaluation of the Senior Managers and Certification Regime | This Report sets out the work and conclusions of the PRA evaluation, which reviewed the operation of the SM&CR against its original objectives. It also examined whether the SM&CR has resulted in unintended consequences.) | |
Dec 2020 (first published in July 2015) | PRA - Supervisory Statement | SS28/15 - Strengthening individual accountability in banking | This supervisory statement sets out the PRA’s expectations of how Relevant Firms should comply with the regulatory framework of the:
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Feb 2020 (first published in Aug 2015) | PRA - Supervisory Statement | SS35/15 - Strengthening individual accountability in insurance | This supervisory statement sets out the PRA's approach to strengthening individual accountability in insurance. The statement sets expectations regarding:
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Updated Jul 2019 | The Senior Managers and Certification Regime: Guide for FCA solo-regulated firms | https://www.fca.org.uk/publication/policy/guide-for-fca-solo-regulated-firms.pdf | This guide is a summary of the rules and guidance on the SMCR. It provides an overview of how the SMCR works and what firms need to do under the regime |
2016 | Bank of England and Financial Services Act 2016 | https://www.legislation.gov.uk/ukpga/2016/14/contents/enacted | The 2016 Act extends the SMCR to all sectors of the financial services industry. |
2013 | Financial Services (Banking Reform) Act 2013 | https://www.legislation.gov.uk/ukpga/2013/33/contents/enacted | The 2013 Act underpins SMCR – see Part 4. In 2016, UK Parliament introduced the Senior Managers and Certification Regime (SM&CR) which applied to banks and insurers from the end of 2018. Central to this was a requirement that the most senior decision-makers in firms should have clearly assigned responsibilities and be accountable for actions within their remit. These reforms complemented other reforms which ensure that senior individuals are also held accountable for their actions through their remuneration. |
12 June 2013 | Report of the Parliamentary Commission on Banking Standards entitled “Changing banking for good” | https://www.parliament.uk/globalassets/documents/banking-commission/Banking-final-report-vol-ii.pdf | In this Report, the Commission recommended the introduction of an individual accountability regime – which would become known as SMCR. |
Other Jurisdictions
Date | Title | Link | Notes |
11 Dec 2020 | Australia – APRA Information Paper on “Implementation of the Banking Executive Accountability Regime (BEAR)” | https://www.apra.gov.au/sites/default/files/2020-12/BEAR%20information%20paper%20December%202020.pdf | The Australian Banking Executive Accountability Regime (BEAR), has its basis in Part IIAA of the Banking Act 1959. It establishes accountability obligations for authorised deposit-taking institutions (ADIs) and their senior executives and directors.The APRA has published an information paper detailing the findings from its review of the implementation of the Banking Executive Accountability Regime by three of Australia’s largest ADIs. |
22 Jan 2020 | Australia – Treasury Proposal Paper on “Implementing Royal Commission Recommendations 3.9, 4.12, 6.6, 6.7 and 6.8 Financial Accountability Regime" | https://treasury.gov.au/sites/default/files/2020-01/c2020-24974.pdf | Following adoption of BEAR the Australian government established the Hayne Royal Commission into Misconduct in Banking, Superannuation and Finance Services Industry. A key recommendation of the Commission was for the extension of BEAR across the financial sector. To advance this recommendation Australian Treasury published a paper setting out a model to extend BEAR to all APRA regulated entities - the Financial Accountability Regime (FAR). |
10 Sept 2020 | Singapore – Monetary Authority of Singapore -Guidelines on Individual Accountability and Conduct | The purpose of the Guidelines is to improve standards of conduct across the financial services sector. The Guidelines promote the individual accountability of senior managers and also strengthen oversight of material risk personnel. The Guidelines also seek to improve standards of conduct among all employees. | |
16 Dec 2016 | Hong Kong - Circular to Licensed Corporations Regarding Measures for Augmenting the Accountability of Senior Management | Hong Kong’s Securities and Futures Commission (SFC) introduced a Manager in Charge regime which is aimed at increasing the accountability of senior management. The regime applies to "Managers in Charge" usually senior management including directors and Responsible Officers across eight core functions. |
International Authorities
Date | Title | Link | Notes |
Jul 2015 | G30 – Report on Banking Conduct and Culture | See pp.46 – 48 where the Report makes recommendations concerning measure that can be taken to enhance Senior Accountability and Governance. | |
20 Apr 2018 | FSB Report - Strengthening Governance Frameworks to Mitigate Misconduct Risk: A Toolkit for Firms and Supervisors | In this Report, the FSB identified a lack of accountability as a key cultural driver of misconduct. The FSB recommended that national authorities identify and assign key responsibilities, that they also hold individuals accountable and assess the suitability of people assigned key responsibilities. |