Financial Services Ireland (FSI), the Ibec group representing the financial services sector, has welcomed the signing into law of a new individual accountability framework for the industry.

The Central Bank (Individual Accountability Framework) Act 2023 will give the Central Bank the ability to hold individuals accountable for wilful acts of wrongdoing in the industry.

The Central Bank is expected to bring forward regulations and guidance around the implementation of the Act, including a timeframe for when the new rules will begin to apply to the financial services industry. The proposed regulations and guidance will be subject to a public consultation.

“This legislation is the culmination of a multi-year process of engagement and is the most significant piece of legislation for the industry as a whole in the last ten years," said Patricia Callan, director of Financial Services Ireland.

"The financial services industry directly supports 116,000 jobs in Ireland and our focus is on ensuring a credible, proportionate and transparent regulatory system."

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Callan said the group would engage with the Central Bank on the detail of its proposed secondary legislation and a reasonable timeframe for its introduction, once finalised.

"In our view, this should be 12 months," she added. "We also want to ensure that this powerful enforcement tool will be deployed dissuasively and where necessary, against wilful acts of wrongdoing.

"It must not operate to dissuade people from choosing financial services as a career or investing and doing business in Ireland.”

A 2018 Conduct & Behaviour in Irish Retail Banks report is the cornerstone of the regime.

The new regime includes a senior executive accountability regime, an enhanced fitness and probity regime, and a new streamlined enforcement regime to remove the requirement for the Central Bank to first prove wrongdoing at the firm level before pursuing individuals.

Photo: Patricia Callan (Pic: Photocall Ireland)