Dechert LLP has highlighted ongoing consultation in Ireland on corporate governance of investment firms in its latest roundup of key European regulatory changes.
Consultation Paper 94, issued by the Central Bank of Ireland outlines the new requirements that investment firms, their boards and executives will have to abide by in future.
“The Central Bank continues to identify corporate governance deficiencies whereby poor corporate governance structures have resulted in firms being exposed to increased risks,” the Bank said in its introduction to the consultation.
“These deficiencies contribute towards undermining board effectiveness, prudent management, good culture, strong risk management and oversight, and the safety and soundness of these firms. In 2012 the Central Bank conducted a thematic review of corporate governance in investment firms and issued nine recommendations for improving standards in Ireland. While improvements were observed, weaknesses continue to exist. Further to the 2012 recommendations and subsequent supervisory engagement in respect of corporate governance matters, and in line with developments relating to corporate governance in other sectors, this Consultation Paper proposes statutory corporate governance requirements for investment firms.”
Responses to the consultation are being sought by 5 August, 2015.
To read the full Paper, click here: CP94 Consultation on Corporate Governance Requirements for Investment Firms