Skip to main content
Normal View

Corporate Governance

Dáil Éireann Debate, Tuesday - 15 June 2010

Tuesday, 15 June 2010

Questions (104, 105, 106)

Joan Burton

Question:

189 Deputy Joan Burton asked the Minister for Finance if his Department was consulted and or had an input into the consultation paper CP 41 on corporate governance in financial institutions published by the Financial Regulator in April 2010; his views on whether the code as currently drafted is sufficient to deal with the failures of corporate governance in financial institutions here; and if he will make a statement on the matter. [25670/10]

View answer

Joan Burton

Question:

190 Deputy Joan Burton asked the Minister for Finance his views on the proposal in the draft code on corporate governance institutions to omit the provision that any director who has served more than nine years on a board is no longer deemed independent; if his attention has been drawn to the fact that this is a key provision in the Financial Reporting Council Combined Code on Corporate Governance; his views on whether this omission will weaken the code; his further views on whether this provision should be included in the code; and if he will make a statement on the matter. [25671/10]

View answer

Joan Burton

Question:

191 Deputy Joan Burton asked the Minister for Finance his views on the proposal in the draft code on corporate governance in financial institutions to omit the whistle blowing provision requiring audit committees to review arrangements by which staff of a company may, in confidence, raise concerns about possible improprieties in matters of financial reports or other matters, which is a provision in the Financial Reporting Council Combined code on corporate governance; his views on whether this omission will weaken the code; if he believes this provision should be included in the code; and if he will make a statement on the matter. [25672/10]

View answer

Written answers

I propose to take Questions Nos. 189 to 191, inclusive, together.

The Financial Regulator is currently undertaking a public consultation on corporate governance through its consultation paper, Corporate Governance in Financial Institutions, published in April 2010.

The consultation paper has been prepared and issued directly by the Financial Regulator, on foot of a commitment in the renewed Programme for Government, to develop new statutory rules in relation to the governance of major financial institutions.

As the Deputy is aware the Financial Regulator is independent in the performance of its functions and my Department has not had any role in the preparation of the consultation paper.

The consultation paper sets out proposed minimum requirements as to how banks and insurance companies should organise the governance of their institutions including membership of the Board of Directors, the role of the Chairman and the operation of various board committees. It is proposed that the requirements will apply to all credit institutions and insurance companies licensed or authorised by the Financial Regulator including Irish licensed and authorised subsidiaries of international financial services groups.

The Financial Regulator's consultation paper also sets out the statutory basis on which it will implement the proposed new corporate governance rules.

It would not be appropriate for me to comment on the specific issues raised by the Deputy as these are a matter for the Financial Regulator to consider in finalising its proposed corporate governance standards. The Deputy may, however, wish to bring her views to the attention of the Financial Regulator by way of a formal submission to its consultation. I am informed that the Financial Regulator has invited views on its consultation paper up to 30 June 2010.

Top
Share