Dáil Éireann Debate, Wednesday - 31 March 2021
67. Deputy Jim O'Callaghan asked the Minister for Finance the status of the programme for Government commitment on a senior executive accountability regime to deliver heightened accountability with the banking system; and if he will make a statement on the matter. [17143/21]
View answerAs the Deputy will note, there has been extensive engagement on this topic at the start of this session but I will re-state that the Central Bank already has extensive regulatory powers to investigate and impose sanctions where there are breaches of financial services legislation. The introduction of the Senior Executive Accountability Regime (SEAR), will complement these existing powers, ensuring that the Central Bank has the additional powers necessary to provide appropriate regulation.
The legislation required to provide for SEAR is complex as it gives rise to a number of constitutional issues. Very careful consideration has had to be given to the proposals due to the need to ensure that they are robust and can withstand legal challenge. Officials from my Department have been in ongoing and detailed discussions with the Central Bank and the Attorney General’s office on the detail of the proposed Bill.
SEAR will require firms to set out clearly the roles and responsibilities of their senior executives including the production of Management Responsibility Maps documenting key management and governance arrangements in a comprehensive and accessible way. This should ensure that there is clarity as to who is responsible for what.
The legislation will include Conduct Standards for individuals and firms, giving the Central Bank additional powers to enforce obligations on financial services providers, and relevant individuals working within them, with respect to expected standards of conduct.
The legislation will also enhance the existing Fitness & Probity Regime and break the “Participation Link” to facilitate the Central Bank in taking action against either a firm or an individual where a contravention of financial services legislation occurs.
As work on the various aspects of the legislation is advanced, I will consider how SEAR will be rolled out across the various sectors of the financial services industry but I would expect that the most significant financial sectors would be encompassed by the legislation.
I intend that the heads of Bill will be drafted and presented to Government before the summer recess. This is subject to the Attorney General’s advice on the adequacy of the safeguards included to protect the constitutional rights at stake.
