IRELAND Law and Practice Contributed by: Keith Robinson, Barry Tyrrell and Julia Mullin, Dillon Eustace LLP
In its Consultation Paper 153, the CBI confirmed that avoiding a contravention includes avoiding the continuation of a contravention. When con - sidering whether a relevant individual has dis - charged their duty of responsibility and taken the necessary reasonable steps, the IAF Act requires the CBI to consider all “relevant circumstanc - es”, including the function being performed, the person’s level of knowledge and experience, the level of knowledge and experience that a person performing the role should have and the exist - ence and application of appropriate and effec - tive systems. The SEAR also requires each “in-scope firm” to have a comprehensive and up to date man - agement responsibilities map that describes its management and governance arrangements. Furthermore, each “in-scope firm” must prepare a statement of responsibilities clearly setting out the role and areas of responsibilities of the rel - evant PCF role holder, including all inherent, pre - scribed and other responsibilities, so that there can be no ambiguity as to the scope of their duties. This will also enhance the CBI’s ability to hold individuals accountable for regulatory breaches in areas for which the PCF role holder is respon - sible. Conduct Standards The IAF Act introduced conduct standards applicable to individuals performing CFs in all firms These conduct standards applied from 29 December 2023 and their purpose is to impose an obligation on each person performing a CF to act appropriately and to ensure that any individual who has engaged in misconduct is held accountable for that misconduct. The IAF imposes common conduct standards that apply
to all CFs (including PCFs), requiring these indi - viduals to: • act with honesty, integrity, due, skill, care and diligence; • co-operate in good faith and without delay with regulators; • act in the best interests of customers and treat them fairly and professionally; and • operate in compliance with standards of mar - ket conduct and trading venue rules. The IAF also introduces a small number of addi - tional conduct standards that will be imposed on senior executives. These additional conduct standards require in-scope individuals to take reasonable steps and to consider all relevant circumstances in the discharge of their duties. The IAF Act also provides for the CBI to set out business standards to be met by firms for the purpose of ensuring that firms act: • in the best interests of customers and the integrity of the market; • honestly, fairly and professionally; and • with due skill, care and diligence. Changes to Fitness and Probity Regime The IAF also introduces updates to the CBI’s fit - ness and probity regime. Under the IAF, firms must issue a “certificate of compliance” con - firming that they are satisfied on reasonable grounds that the CF holder complies with the fitness and probity standards and that the per - son has agreed, in writing, to comply with these standards. From 1 January 2025, and annually thereafter, firms will be required to submit con - firmation of compliance with the certification requirements to the CBI.
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