Dáil Éireann Debate, Tuesday - 21 May 2013
61. Deputy John McGuinness asked the Minister for Finance his views on the departure of senior personnel from the regulatory side to take up roles in the financial services sector; and if he will make a statement on the matter. [23929/13]
View answer63. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if his attention has been drawn to a practice at the Central Bank of Ireland where retiring directors are re-hired on contracts for a number of days a week for a year as a means of increasing their pensions. [23959/13]
View answerI propose to take Questions Nos. 61 and 63 together.
It is to be expected that staff will move between the Central Bank and the financial sector in both directions. This can be healthy to the extent that it allows the Central Bank to gain access to high-level sectoral expertise while allowing those with regulatory experience to move into the industry and support a compliance culture. This process needs to be managed in a way that ensures the independence and integrity of the Central Bank is preserved and seen to be preserved. To address this, a Human Resources Strategy has been developed by the Central Bank, which includes as key elements talent management and succession planning. I have been informed by the Central Bank that it has appropriate policies and procedures in place to deal with departures of senior personnel to take up roles in the financial services sector. Specifically, this potential issue is taken into account when drafting new contracts for certain roles or reassigning staff to other duties if a potential for conflict arises.
The Central Bank Code of Ethics requires that in the event of an employee intending to leave the employment of the Central Bank to take up alternative employment, self-employment or business, they are obliged to provide early notification to line management when a conflict of interest exists, or might be perceived to exist, between those duties held in the Central Bank and those to be undertaken with the new employer, in self-employment or in business. In such circumstances, the Central Bank may assign alternative tasks to the individual while their notice period is being served.
The notice period may be lengthened in excess of the contractual or statutory notice period by mutual agreement where it is felt that it is in the best interests of the Central Bank and the employee.
I am informed by the Central Bank that there is no practice there of rehiring retired directors or other retired staff in order to increase their individual pension benefits. In very exceptional and limited circumstances, the Central Bank may re-engage retired staff subject to public sector norms and pension scheme rules but pension benefits do not increase as a result of this re-engagement.
