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.

News Update – 27 July 2021

SEAR Legislation Published in Draft Form

The Cabinet has approved the General Scheme of the Central Bank Bill which will provide the legislative basis for the new Senior Executive Accountability Regime (SEAR). You can access the draft legislation in the Table below.

Draft SEAR Legislation

CBI Authored Documents

Central Bank Speeches

Ministerial Speeches

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. It is hoped that the Heads of Bill can be published in July 2021. The agreement and publication of the heads of the Bill will allow the pre-legislative process to begin. The Central Bank has indicated that it intends to hold a public consultation on the implementation of the Bill following enactment of the legislation.
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	https://tinyurl.com/ah536tdk	Attendance of Deputy Governor Ed Sibley and Director General Derville Rowland before the Joint Committee of the Houses of the Oireachtas. Much of the debate focused on the fine that CBI had imposed on Davy Stockbrokers. Individual accountability, and SEAR, were addressed on a number of occasions throughout the debate.
3 Mar 2021	Dáil Parliamentary Question (Written)	Legislative Measures – Wednesday, 3 Mar 2021 – Parliamentary Questions (33rd Dáil) – Houses of the Oireachtas	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)	Proposed Legislation – Wednesday, 27 Jan 2021 – Parliamentary Questions (33rd Dáil) – Houses of the Oireachtas	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	https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/report/evaluation-of-smcr-2020.pdf?la=en&hash=151E78315E5C50E70A6B8B08AE3D5E93563D0168	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	https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/supervisory-statement/2020/ss2815-update-dec-2020.pdf?la=en&hash=A39074526A2BB377D5A4D58CAEF5E50368396E78	This supervisory statement sets out the PRA’s expectations of how Relevant Firms should comply with the regulatory framework of the: Senior Managers Regime (SMR); Certification Regime; Assessment of fitness and propriety; Conduct Rules; and Regulatory References.
Feb 2020 (first published in Aug 2015)	PRA - Supervisory Statement \| SS35/15 - Strengthening individual accountability in insurance	https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/supervisory-statement/2020/ss3515-update-february-2020.pdf?la=en&hash=2BFB68D7CD2F45C1216C9018A9983D5BBAD43009	This supervisory statement sets out the PRA's approach to strengthening individual accountability in insurance. The statement sets expectations regarding: the SIMR; the application of conduct standards and associated notifications; and assessing fitness and propriety.
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.

Date	Title	Link	Notes
14 Feb 2021	Speech by Deputy Governor Ed Sibley entitled “Governance and risk in a time of uncertainty and change”	“Governance and risk in a time of uncertainty and change” - Deputy Governor Ed Sibley (centralbank.ie)	Address discusses the proposed new Individual Accountability Framework and speaks to the 4 elements of that, those being: Conduct Standards, SEAR, Enhancements to fitness and probity regime, and Unified enforcement process.
31 Oct 2019	Speech by Director General Derville Rowland entitled “The Senior Executive Accountability Regime: Our Expectations of Firms”	The Senior Executive Accountability Regime: Our Expectations of Firms - Director General Derville Rowland (centralbank.ie)	Address which specifically focuses on the CBI’s plans for an enhanced level of individual accountability. Topics addressed include: Rationale for focusing on individual accountability, The four elements of the Individual Accountability Framework, Cultural change, Fitness & Probity.
22 Oct 2019	Speech by Derville Rowland, Director General entitled “The Case for the Senior Executive Accountability Regime”	The Case for the Senior Executive Accountability Regime - Director General, Financial Conduct Derville Rowland (centralbank.ie)	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”	The Senior Executive Accountability Regime: The Central Bank’s Expectations and Insights for Boards - Director General Derville Rowland	Address which outlines the key aspects of the proposed elements of the Individual Accountability Framework.

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	https://www.mas.gov.sg/-/media/MAS/MPI/Guidelines/Guidelines-on-Individual-Accountability-and-Conduct.pdf	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	Circular to Licensed Corporations Regarding Measures for Augmenting the Accountability of Senior Management \| Securities & Futures Commission of Hong Kong (sfc.hk)	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.

RDJ SEAR Information Hub