The Central Bank is planning to implement new conduct standards and accountability rules for senior executives in the financial services sector from the end of the year.
Parts of the new rules governing fitness and probity will also have to be implemented from December 31st onwards.
But regulations laying out the responsibilities of different roles as well as the requirements on businesses to clearly set out allocation of those responsibilities and decision making will not come into effect until the July 1st of next year.
Today the Central Bank launched a three-month consultation around how it should implement aspects of the new laws which are aimed at increasing individual accountability of top executives in financial services firms.
As part of the consultation process, the regulator has published draft regulations and guidance which set out the bank's expectations around implementation of the new rules.
The Individual Accountability Framework is made up of three parts, including a Senior Executive Accountability Framework, new conduct standards and changes to the fitness and probity regime which requires certain high ranking executives to receive regulatory approval before taking up their positions.
It also includes changes to the Administrative Sanctions Procedure which will give the regulator the ability to take enforcement action directly against individuals for breaches of their obligations rather than only for their participation in breaches committed by a firm.
The Central Bank had been seeking additional powers in this area for some time so that it can more effectively hold senior executives in regulated firms to account for their actions.
"At its core, financial regulation is about supporting positive outcomes, the interests of consumers and, ultimately, the economic well-being of the community as a whole," said Central Bank Deputy Governor, Derville Rowland.
"The new framework will underpin sound governance across the financial sector."
"It will achieve this by setting out clearly the good practices expected of firms and role-holders and their accountability."
Among those that the bank is seeking the views of are the public, regulated firms, staff, representative bodies, consultancies and service providers.
"The framework also introduces changes to the Central Bank's enforcement processes," said Ms Rowland.
"The enhancements to our Fitness and Probity investigation, suspension and prohibition processes will be the subject of separate regulations and guidance which will be published once the underlying legal provisions have been brought into effect."
"As part of our phased plan, we will launch a second consultation on these changes later this year."
Details of the consultation process can be found at www.centralbank.ie/IAF.
