Financial Services Regulatory Update – July 2024 Round Up

First Phase of SEAR takes effect

As of 1 July 2024, the Senior Executive Accountability Regime (“SEAR”) has taken effect for credit institutions, certain insurance undertakings, and certain investment firms, as well as incoming third-country branches of those firms.

SEAR is a key component of the Central Bank of Ireland's (the “CBI's”) Individual Accountability Framework (the “IAF”). SEAR requires in-scope firms to set out clearly and fully where responsibility and decision-making lie within the firm's senior management. It imposes a legal duty of responsibility on persons carrying out pre-approval controlled function (“PCF”) roles in such firms. As of 1 July 2024, SEAR applies in respect of executive PCF roles within in-scope firms.