Published Tuesday, 24 September 2013
Mr Kelly was the guest speaker at the IRA commemoration last month. (© UTV)
Unionists have claimed the North Belfast representative's remarks at the event last month "glorified terrorism" and had broke Stormont's code of conduct.
The MLA was addressing a republican demonstration marking the deaths of two IRA bombers killed by their own device.
Scotland's Commissioner for Ethical Standards in Public Life, Stuart Allan, will be tasked with reviewing whether he had indeed breached standards after it was agreed in Stormont on Tuesday.
Assembly Standards Commissioner Douglas Bain decided he would not intervene in the probe as he is also a member of the Parades Commission which rules on contentious marches such as Castlederg - and this could cause concerns over impartiality.
DUP MLA Tom Buchanan alleged his remarks "rang in the ears" of dissidents.
"Mr Kelly's comments tell those republicans if you believe you have a vision of equality and freedom and if you know the risks you are taking you cannot stand idly by or leave it to others," he told the assembly.
The annual event in the county, organised by the Tyrone Volunteers Commemoration, this year coincided with the 40th anniversary of the deaths of two local IRA men.
Seamus Harvey and Gerard McGlynn died in 1973 when the car bomb they were transporting to Castlederg detonated early, exploding in Co Donegal.
At the event Mr Kelly said: "They were ordinary young men in the extraordinary circumstances of the early 1970s who rose to the challenge of the time.
"They had a vision of equality and freedom and they knew the risks they were taking to achieve it but they could not stand idly by or leave it to others.
"It is a harsh reality of resistance that we lose some of our best activists during armed conflict and Seamus and Gerard along with their other comrades whom we remember here today, paid with their lives."
Several hundred bandsmen and supporters took part in the march, while hundreds of protestors staged a counter-demonstration at the town's cenotaph.
Mr Kelly has argued that he was honouring "comrades who gave their lives in the struggle for Irish freedom and equality" and that the town centre was supposed to be a "shared space".
He said there must not be "a hierarchy of victims which would discriminate against republicans and nationalists not just in life, but in death also."
© UTV News