Central Bank (Individual Accountability Framework) Act 2023

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PART 2

Individual accountability and standards

Chapter 1

Responsibility of persons performing pre-approval controlled functions

Amendment of section 48 of Act of 2013

3. Section 48 of the Act of 2013 is amended—

(a) in subsection (2), by the insertion of the following paragraphs after paragraph (b):

“(ba) provision specifying the aspects of a regulated financial service provider’s affairs for which a PCF holder has inherent responsibility for the purposes of section 53B of the Central Bank Reform Act 2010 ;

(bb) provision specifying the aspects of a regulated financial service provider’s affairs for which responsibility is to be allocated by the regulated financial service provider to a PCF holder for the purposes of section 53B of the Central Bank Reform Act 2010 ;

(bc) provision as to the arrangements described in subsection (2A) that a regulated financial service provider is to adopt;”,

(b) by the insertion of the following subsection after subsection (2):

“(2A) The arrangements referred to in subsection (2)(bc) are:

(a) arrangements for the regulated financial service provider to allocate to PCF holders for the purposes of section 53B of the Central Bank Reform Act 2010 responsibility for aspects of its affairs specified in regulations under subsection (2)(bb);

(b) arrangements for the regulated financial service provider, so as to ensure the proper conduct of its affairs, to allocate to a PCF holder for the purposes of section 53B of the Central Bank Reform Act 2010 responsibility for aspects of its affairs for which no PCF holder has inherent responsibility under regulations under subsection (2)(ba) or responsibility allocated under arrangements described in paragraph (a);

(c) arrangements for the regulated financial service provider to monitor the performance of pre-approval controlled functions in relation to it;

(d) arrangements to make clear the management structure that identifies the lines of authority and accountability, and specifies roles and responsibilities, in relation to the management of PCF holders and of other persons by PCF holders;

(e) arrangements to make clear the governance structure determining how the regulated financial service provider and PCF holders relate to persons concerned in the ownership or control of the regulated financial service provider or representing its customers or other stakeholders;

(f) arrangements for documenting arrangements referred to in paragraphs (a) to (e).”,

and

(c) by the insertion of the following subsection after subsection (3):

“(4) In this section—

‘PCF holder’ means a person performing a pre-approval controlled function in relation to the regulated financial service provider concerned;

‘pre-approval controlled function’ has the meaning given by section 18 of the Central Bank Reform Act 2010 .”.