)
“It is welcome that the Central Bank of Ireland has now heard the concerns of the Irish Association of Investment Managers and the wider industry—including the Law Society of Ireland and the Institute of Directors (IoD)—and announced a one-year deferral on the rules for non-executive directors,” writes Michael D’Arcy, Chief Executive of the association.
The association welcomes the framework but had raised concerns about the current proposals, including an overly ambitious timeline for implementation and Rule of Law issues—unfairness that could result in an even worse scenario for an individual who has left the company and does not have the benefit or resources of the company to vindicate their decisions.
Another area of concern raised was around companies operating a delegated model across multiple jurisdictions. As the incoming legislation urrently stands, an individual within a company based in Ireland could face legal liability for a decision made by others—even if they had disagreed with that decision—and potentially be fined up to €1 million and/or disqualified for life. Additionally, such individuals facing financial and professional ruin would have little recourse.
“Further consultation is needed,” writes Michael.
New sanctions ‘could lead to fines of up to €1 million and lifetime work bans’