The Minister for Finance has signed a second commencement order (Central Bank (Individual Accountability Framework) Act 2023 (Commencement of Certain Provisions) (No. 2) Order 2023) under the Central Bank (Individual Accountability Framework) Act 2023 (the IAF Act).
The second commencement order confirms that the provisions of the IAF Act which were not already commenced by the first commencement order in April 2023 will come into operation on 29 December 2023 – these provisions deal with the senior executive accountability regime (SEAR), the conduct standards and the new certification requirement as part of the fitness and probity (F&P) regime.
The 29 December 2023 date aligns with the planned timeline for the key pillars of the IAF. By way of reminder, that timeline is as follows:
- Central Bank Consultation CP 153 – the consultation period ran from 13 March to 13 June 2023. A feedback statement is expected late Q3/early Q4 2023.
- Amended F&P Investigations Guidance and Regulations – due for publication in March 2023, and published in April 2023 after the first commencement order was signed. Read our earlier insights here: Fitness and Probity: New Regulations and Guidance published.
- Public consultation on changes to the Administrative Sanctions Procedure – due for publication mid-2023 and published in June 2023 as planned. Read our earlier insights here: Central Bank Launches Consultation on Proposed Changes to its Administrative Sanctions Procedure. The consultation closes on 14 September 2023.
- Conduct Standards to apply from end-December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023).
- New certification requirement under the F&P regime to apply from end-December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023 and the related regulations which formed part of CP 153 are expected to come into force around the same time).
- Holding companies to be subject to the F&P regime from end- December 2023 (the relevant provisions of the IAF Act will become operational on 29 December 2023 and the related regulations which formed part of CP 153 are expected to come into force around the same time).
- SEAR to apply from 1 July 2024 (the key deliverable for SEAR is the set of regulations which formed part of CP 153 and is expected to come into force on that date).
See also: IAF/SEAR Update: First commencement order signed.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
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