Developments in conduct standards for financial services firms

On 24 July 2018, the Central Bank of Ireland (CBI) published new proposals to establish an Individual Accountability Framework for staff of Irish financial services firms which would set conduct standards and clearer lines of accountability within firms, together with new powers to pursue individuals directly for their misconduct. The proposed reforms would introduce a system similar to the Senior Managers Regime and Senior Insurance Managers Regime in existence for UK financial services firms. Enhancements to the Fitness & Probity Regime in Ireland are also planned. Furthermore, the CBI signalled its intent to step up its supervisory activity over conduct of business matters, including use of the CBI’s Consumer Protection Risk Assessment (CPRA) Model and increased challenge of boards and executive management. In this briefing note, we summarise the CBI’s planned reforms, which are relevant to both domestic and cross-border insurers.