Insights

The Individual Accountability Framework regulation is intended to improve executive accountability within the Irish Financial Services sector by increasing the transparency between Regulated Financial Services Providers (RFSPs) and the Central Bank of Ireland (CBI), particularly of where accountabilities lie in organisations. It follows in the footsteps of similar regimes successfully enacted in the UK, Australia, Singapore, Hong Kong and Malaysia.

The proposed legislation follows on from the reforms proposed in the Central Bank’s report on Behaviour and Culture of the Irish Retail Banks published in 2018, which highlighted the shortcomings in the culture of Irish retail banks. The Central Bank has emphasised that there has been a focus both nationally and internationally since the global financial crisis on “strengthening corporate culture, driving positive behaviour and increasing individual accountability”.

The global economic crisis that resulted as a consequence of the pandemic has stressed the relevance of prioritising sustainability pillars within financial services.