The SEAR requires firms to allocate prescribed responsibilities and other responsibilities provided by the Central Bank to individuals in Pre-approval Controlled Functions (PCF) roles.

Although SEAR will not be extended to (I)NEDs until 1 July 2025, (I)NEDs of in-scope firms should have Statements of Responsibilities (SORs) and Management Responsibility Maps (MRMs) already in place, see further details below. 

The new obligations include the preparation of individual SORs which is a separate document for each PCF setting out their role and indicating inherent, prescribed and other responsibilities. A SOR for each (I)NED should already be in place and be reviewed on a regular basis.

All in scope firms covered by these rules must have up to date MRM's. This map outlines how the firm is managed and governed. The Central Bank states, a firm's MRM is a collection of individual SORs. It should therefore provide an overarching view of the allocation of prescribed responsibilities and other responsibilities across a firm.

(I)NEDs will also be subject to the statutory Duty of Responsibility, introduced as part of SEAR, given they are individuals holding PCF roles. This statutory Duty of Responsibility will oblige (I)NEDs to take reasonable steps to avoid a contravention by their firm.  As a PCF role holder, it's their duty to make sure they do everything they can to prevent their firm from breaking any financial services laws in the areas they are in charge of. This fosters a culture of personal responsibility at the top levels of an organisation. With (I)NEDs being more directly accountable for their roles, there is a greater focus on identifying, managing, and mitigating risks within their purview; this can lead to more robust risk management practices across a firm.