Institute of Directors in Ireland welcomes proportionate approach adopted in new corporate governance code for finance sector
Date: 09 November 2010IoD to host corporate governance roundtable in conjunction with Central Bank
The Institute of Directors in Ireland has today welcomed the new Corporate Governance Code for Financial Institutions and Insurance Undertakings, in particular, the adoption of a proportionate approach to these regulations.
“Given the necessary requirement to improve corporate governance standards in Ireland, which we all accept, the Corporate Governance Code is to be welcomed and will strengthen Ireland’s position as a global financial services hub,” said IoD Chief Executive, Maura Quinn.
“We welcome the adoption of a two-tier proportionate approach, which we called for in our submission. A proportionate approach will still allow for high standards to be achieved, while avoiding over regulation of smaller entities and potentially damaging our competitiveness,” she said.
The proposal limiting the number of directorships was of greater concern to the IoD, given that it would limit the talent pool and negatively impact on professional independent non-executive directors. We are therefore pleased to see amendments in this area with higher thresholds being set and the exclusion of voluntary and pro bono directorships.
In his address to the Chairpersons’ Forum Institute of Public Affairs today, Matthew Elderfield called for a greater focus on training and board skills and the IoD is fully committed to working with the Financial Regulator’s office to achieve this shared goal.
We look forward to hosting a roundtable on corporate governance in conjunction with the Central Bank, recognising that improving corporate governance standards will be of inherent value to Ireland Inc.
We consider formal board and individual director training, as well as independent board performance assessments to be essential ingredients to improving corporate governance standards in Ireland and we are keen to see these provisions put into effect.
Maura Quinn, IoD Chief Executive, concluded: “Increasing regulation is one way to achieve better standards but it is not the only way. We need to create a balance between regulation and education and we must ensure that directors are equipped with the appropriate skills, knowledge and expertise to carry out their role against a backdrop of tighter regulatory controls.”
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