The Pensions Authority expects all schemes to be fully compliant with IORP II requirements by 1 January 2023. We speak to three members about their experience with the changing pensions landscape Barry Prendiville Director Nolan & Partners We are currently setting up a Master Trust arrangement for all employees, including those who are not currently in an existing pension arrangement. We were prompted to accelerate this process due to IORP II and, to a lesser extent, auto-enrolment. It has been a slower process than we would have liked, but it offers a suitable long-term solution. At a high level, there are benefits to IORP II. However, I do believe that one-member arrangements should have been exempt from the requirement to comply with IORP II. Trustee responsibilities have become much more onerous. Where possible and practical, it makes sense to outsource this risk to suitably qualified pensioneer trustees. I am concerned that transferring pension benefits accrued by employees to a new Master Trust may be a tedious process. Given prevailing volatility in financial markets, any transfers need to be efficiently managed. Pensions remain a mystery to a large cohort of the population. The myriad of pension arrangements in place and the technical jargon used by most in the industry confounds and confuses people. Education is key, and I think that retirement planning should be taught at school and university level. While a positive step overall, I have some concerns that auto-enrolment, once introduced, may lull scheme members into a false sense of security. It is debatable if the proposed contribution level will be adequate to meet long-term income requirements in retirement. It will also put an additional cost burden on businesses in particular sectors that were most particularly exposed to COVID-19. Overall, auto-enrolment should be seen as a positive development, but it must be clearly communicated and explained in jargon-free language. Damian Cooper Head of Private Clients and Investments Acuvest The burden of increasing regulation is unlikely to reverse any time soon. For the last two years, my organisation has been helping clients understand, develop, and implement updates to their policies and procedures to ensure their pension and investment governance complies with the new regulatory requirements. It is important to remember that, while Master Trust solutions offered in the marketplace are being strongly promoted based on their ability to help companies and trustees overcome a short-term regulatory hurdle, they are a relatively new development in the Irish market and, as such, are largely unproven in many respects. While the Pensions Authority is pushing for Master Trusts to retain the ability to independently select its key service providers in the interests of its members, it remains to be seen how easy it will be for a Master Trust to decide that the interests of members are best served by retaining a key competitor to provide scheme investment or administrative services. I think that IORP II will likely lead to a higher level of governance across the pensions industry, which is definitely to be welcomed. The transitionary period into a new regulatory regime is always challenging, and participants, regulators, professional service providers and advisors will all need time to adapt and find a new status quo that works effectively and efficiently. I think it would have been preferable to see if the regulations could have been implemented in a phased manner, starting with the largest schemes and well-resourced entities such as Master Trusts, which would then have allowed industry providers to develop best-practice models that the Pensions Authority could have assessed and then implemented, potentially in a scale-adjusted manner across the rest of the industry. It is important for people not to get too distracted by the industry focus on regulation and vehicles, as these will get sorted over time. The key thing to remember is that making pension contributions early and often is a valuable, tax-efficient way for people to save for retirement. Employees should take maximum advantage of any contributions available from their employer, remember that tax relief on contributions cannot generally be backdated, and start saving as early as possible. Bernard Barron Pensions Audit Partner Mazars Due to the recent legal enactment of the IORP II Directive in Ireland, there are very substantial additional pension administration and governance obligations and costs being incurred by pension schemes. Based on these expected additional costs, several smaller defined contribution pension schemes have already decided to wind-up and transfer their pension scheme arrangements into a Master Trust. The Irish Pensions Authority has set out strict criteria for establishing Master Trusts in Ireland, which is to be welcomed. There will be relatively few Master Trusts set up, and organisations expect to gain the advantage of lower administration costs through the economies of scale that these large Master Trusts will have compared to the smaller pension schemes. In addition, the Pensions Authority has set out stricter requirements for pension scheme trustees, and Master Trusts will have the benefit of pension specialists acting as trustees, which is not necessarily the case at present. Due to the increased size and importance of pension scheme arrangements for employees and employers, the increased governance and accountability requirements under this Directive are welcome. However, the currently proposed Pensions Authority requirements is imposing very significant obligations and costs on smaller and one-member pension schemes, which are not being allowed to implement on a proportionate basis or with a viable alternative. The IORP II Directive has substantial additional pension administration, governance obligations and costs. This may cause organisations to re-consider the pension benefits that they incur or plan to incur. In the context of the growth in the ageing of the Irish population, the Government’s plans for implementing pension auto-enrolment in the short- to medium-term are welcome. However, much more clarity and detail are needed about how this is going to work, particularly in relation to cost and funding by employees and employers. At a national level, the future increased costs and funding of pensions for those pensioners who are reliant on state pensions and for the public sector is a continuing concern.

The use of malicious software to extort small businesses is on the rise in Ireland as global criminals seek out easier prey. Arlene Harris reports Ransomware. At a time of rising awareness of cyberthreats and the need for adequate safeguards across all business functions, including finance, ransomware is emerging as a growing threat for even the smallest operators. And, according to Dr Richard Browne, Director of the National Cyber Security Centre (NCSC), ransomware is “here to stay”. A form of extortion “as old as the hills”, ransomware is a type of malicious software designed to block access to a computer system until a sum of money is paid, explained Browne. What is new in the field is a concerning rise in the number of ransomware attacks recently aimed at small- and medium-enterprises (SMEs), a segment of Irish business so far largely unaffected by this particular cyberthreat. Indeed, a statement issued in August by the NCSC in conjunction with the Garda National Cyber Crime Bureau warned SMEs that, in a noticeable shift in ransomware tactics, hackers were turning their attention away from big business and government entities to focus instead on smaller businesses. “This trend has been observed globally and Ireland is no exception, with several businesses becoming victims of these groups in the past number of weeks,” said Browne. “A number of different business models are typically used, which involve encryption of a victims data by a threat actor, whether that is a criminal gang or a lone individual.” Greater threat in newer tactics Cybersecurity has, by and large, kept pace with criminal activity online until now and experts are quite adept at dealing with established ransomware practices—which typically involve a threat actor making contact with a victim, and requesting a key to unlock or decrypt the victim’s information. The threat landscape is evolving, however, leading to newer ransomware tactics that are more difficult to defend against. “Recently, human-operated ransomware has been developed, which means there is a person in the loop with more advanced techniques,” Browne explained. “They hack into a system—or across it, in many cases—steal data and seek to encrypt an entire IT system. The old-fashioned ransomware ‘drive-by’ (often caused by clicking on a link) is not a massive threat as it can usually be stopped by anti-virus software, but human-operated ransomware is categorically a risk for businesses of any kind.” Behind the rise of human-operated ransomware are often established, integrated and organised criminal enterprises that operate “at scale and at speed” globally, Browne said. “This is very much a global market, with the ‘bad guys’ targeting IP addresses anywhere in the world,” he said. “Over the years, many have been heavily compromised, but, while their organisations have been broken up, the individuals involved are still criminals and they are still capable of conducting cyberattacks, so they tend to simply reform and go after smaller targets.” Criminals target smaller players While large corporations are more likely to have the financial means, technology and expertise to handle a sophisticated ransomware attack, the same cannot be said for many of their smaller counterparts. “Because of changes in the ecosystem, smaller companies are getting hit more often than bigger entities, which can afford to be prepared, are more resilient and much more able to deal with incidents when they occur,” Browne said. “So, [the hackers] are going after SMEs and individual companies, which might only net them a smaller ransom, but they are much more likely to be paid. “It is also easier. They don’t have to spend as much time navigating systems and don’t have to be as careful as they would with high-end security systems, so they can target more small companies. “Solicitors’ offices, for example, will often have sensitive data on file—so it is in their interest to pay not to have it released. “The criminals may also gain access to customer money sitting in a firm’s account over a weekend (for lodgement the following week), which makes them a target for other activities, such as fraud. “Of course, there have been some very high-profile attacks too, such as the Colonial Pipeline attack in the US, which took out a piece of physical infrastructure without actually damaging or physically affecting it. JBS Meats is another one and the HSE is probably the most well-known here in Ireland.” These ransomware attacks are happening “all the time”, said Browne, both in Ireland and elsewhere. “Just today, I’ve had reports of about 15 new ransomware attacks in Europe over a few days. We, in Ireland, are relatively lucky as we are something of a small player, but we are at risk nonetheless.” While criminal gangs are set to continue making money by hacking into IT systems, harvesting data and selling it on, or blackmailing companies into paying a ransom, Browne advises that there are steps SMEs can take to protect themselves from ransomware attacks. Effective security measures “We appreciate that many business owners are understandably nervous about the threat ransomware poses, but some straightforward security measures can be put in place to ensure that an organisation’s data and systems remain secure,” he said. “Some SMEs won’t have an IT system as it will be outsourced, so the first thing they need to do is to ask their vendor how prepared they are for dealing with this kind of thing.” At the very least, businesses should have two-factor identification on all of their online accounts—whether it be Facebook, Gmail or a financial services package. “It sounds simple, but, if everyone did this, it would dramatically reduce the amount of damage done,” said Browne. “After that, I would encourage firms to ensure their vendor has proper offline back-up and, internally, to decide that—on a specific day of the week—someone will be tasked with taking the external hard-drive, making a copy of it, and putting it away. “This way, they will have a secure offline system so, if they need to restore it after an incident, it can be done without taking down the company. “Beyond that, they should have an up-to-date antivirus system and ensure any vulnerabilities are patched up.” Making these provisions is becoming more essential for SMEs because ransomware, as Browne puts it, “isn’t going away”. “People need to be vigilant and governments need to do more to deal with it and ensure these guys don’t get paid, so that, eventually, it will become less prevalent,” he said. “That’s not going to happen overnight. It is going to continue to be an issue for some time. We all need to be aware and take steps to keep our systems secure.” For more advice and information, visit ncsc.gov.ie or garda.ie/en/crime/cyber-crime

The Corporate Enforcement Authority Act 2021 overhauled the legislative framework for businesses in Ireland, impacting company directors, corporate restructuring, share premiums, and the distribution of profits. Dee Moran and Lilian Halpin dig into the details Although most of the provisions of the Companies (Corporate Enforcement Authority) Act 2021 (CEA Act) came into effect in July of this year, the focus thus far has centred primarily on the Corporate Enforcement Authority, the successor to the Office of the Director of Corporate Enforcement. There is far more to this Act, however, including a number of interesting updates the Companies Act 2014 (CA 2014). The introduction of the CA 2014, followed the wide-ranging overhaul, modernisation and streamlining of company law in Ireland. It was inevitable, however, that there would be some gaps and omissions in the new regime. The CEA Act introduces provisions aimed at remedying some of these anomalies. While further remediative legislation is expected in the future as the legislature continues to review and refine existing law, in this article, our focus will be the amendments included by the CEA Act impacting company directors, company re-organisation, share premiums, and the distribution of profits. Requirement for directors to provide PPSN details Section 35 of the CEA Act introduces the requirement for directors of Irish registered companies to provide details of their Personal Public Service Number (PPSN) to the Companies Registration Office (CRO) when completing certain documents. While this section of the CEA Act has not at time of writing commenced, it is intended to help protect against identity theft, specifically concerning the set-up of new companies that have used bogus director details and addresses or individual names without permission. The UK’s register of businesses and their directors is famously so weak on information verification that both “Donald Duck” and “Adolf Tooth Fairy Hitler” have been listed as directors of companies. Other difficulties faced prior to this amendment included obtaining a list of directorships for an individual from the CRO as individual director filings may use different versions of the person’s name, such as ‘Eddie’ and ‘Edward’, or the person may have changed address. The introduction of the requirement to file the PPSN as a unique identifier should, therefore, make this process easier. It is important to note that there will be an alternative procedure in place for those directors who do not have a PPSN. The CRO is currently reconfiguring its online portal to accommodate this new requirement and it is expected that Section 35 will commence in the first quarter of 2023. Its implementation will not be without challenge and the CRO has set up a working group to identify issues and try to resolve them to ensure a smoother transition. The CRO is also reviewing the technical challenges that arose after the commencement in 2019 of the Registry of Beneficial Ownership (RBO). The RBO is “the central repository of statutory information required to be held by relevant entities (corporate or legal entities incorporated in the State) in respect of the natural persons who are their beneficial owners/controllers, including details of the beneficial interests held by them.” It is hoped that the CRO will take the learnings from this review and incorporate them into the new system. It is important that potential technical challenges in relation to PPSNs are resolved before section 35 of the CEA Act commences. If they are not properly considered, there is the potential for delays in the filing of changes to directors or to the filing of annual returns, and the possibility of late filing fees or the loss of audit exemption. Therefore, companies and practitioners alike need to be aware of these changes and to begin to make plans to ensure that the appropriate information is understood and updated. Three party share-for-undertaking transactions The provision for three party share-for-undertaking transactions within corporate reorganisations was introduced in section 91 of CA 2014. This section recognised that it is not uncommon for companies to enter into a transaction where an undertaking, part of an undertaking, or a subsidiary, is transferred to a new company, which then issues shares as consideration to the shareholders, rather than to the transferring company. Subsection 91(4) of CA 2014 has, however, been interpreted by certain practitioners to mean that such a transaction could only be validated by either a summary approval procedure or a special resolution confirmed by court—even where the company has adequate distributable reserves to underpin the transaction. The CEA Act has added subsection 91(4)(c) to clarify that such a transaction can take place without the summary approval procedure, or court approval, in circumstances where the company has distributable reserves that are at least equal to the value of the undertaking transferred. The use of a company’s share premium account Under the Companies Act 1963, a company’s share premium account could be applied for several purposes, such as application by the company in writing off preliminary expenses, or in writing off the expenses of, or the commission paid or discount allowed on, any issue of the shares or debentures of the company. Equivalent provisions were not included in CA 2014 in what was assumed to be an unintended omission by the drafters. This reduced the flexibility of companies in relation to the use of share premiums, causing difficulties. A company wishing to effect a transaction which had been permissible under the Companies Act 1963 was now, for example, obliged to carry out a formal reduction of company capital by the summary approval procedure in CA 2014. This meant that the company might have incurred additional expense, such as obtaining a statutory auditors’ report, or that it might have had to make a court application in circumstances where such a move would not previously have been required. In addition, because the summary approval procedure is not available for the reduction of company capital in the case of public limited companies, such a company had to apply to the High Court in order to reduce its company capital so it could write off such costs and expenses. To remedy this, section 14 of the CEA Act inserts a new subsection 71(5A) into the CA 2014. This subsection restores the status quo that had existed prior to the introduction of the CA 2014, with the exception of permitting its use for the issue of shares at a discount. Restoration of exceptions to “distribution” definition In the since repealed Companies (Amendment) Act 1983, company legislation provided for two exceptions to the rule that a company should not make a distribution except out of profits available for this purpose. They were: a reduction of share capital by paying off paid up share capital; and extinguishing or reducing all or part of a member’s liability on shares that are not fully paid up. These exceptions were not included in CA 2014 and it is worth noting that these omissions were considered and not unintentional. Both exceptions were included in draft legislation but were subsequently removed before CA 2014 was enacted. The effect of the omission of the exceptions meant that a company had to find distributable profits to be able to lawfully reduce or extinguish the liability of members in respect of any unpaid shares, or to pay off paid-up capital. The explanatory memorandum to CA 2014 refers to the omission of the exceptions as providing consistency in the legislation. However, in 2017, the Company Law Review Group—a statutory advisory expert body that advises the Minister on the review and development of Irish company law—was of the opinion that the omission of the two exceptions in the CA 2014 did not take into account the new and detailed regime in that legislation for the reduction of share capital, i.e. requiring either a court order, or to be effected under the summary approval procedure with contingent director liability. It recommended that the two exceptions which had been omitted from CA 2014 be reinstated. Section 19 of the CEA Act has now amended section 123 of CA 2014 to reinstate these exceptions. Planning for the changes ahead It is encouraging that improvements and clarifications continue to be made to legislation, particularly in company law where omissions or inadvertent changes from older legislation have resulted in difficulties in practice. Chartered Accountants Ireland continues to work with its technical committees to identify areas where further clarity on aspects of company law would be beneficial and to make representations to the relevant department outlining those areas so that they might be considered for future legislation. Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland and Lilian Halpin is Technical Manager at Chartered Accountants Ireland

Investors are asking if it’s safe to invest again. Cormac Lucey explains why they might want to hold off for now “Is it safe?” That was the question asked of Dustin Hoffman in the movie “Marathon Man” as he was being interrogated while strapped into a dentist’s chair by Laurence Olivier (playing the role of an on-the-run Nazi war criminal), expertly reimagining our worst dentist nightmares. Much like Hoffman’s position, equity markets have become a nightmare. Investors keep asking themselves whether it is safe to invest again or whether this bear market has longer to run. Jeremy Grantham, the veteran investor, wrote an article on GMO.com in late August warning that the “current super-bubble features an unprecedentedly dangerous mix of cross-asset overvaluation (with bonds, housing, and stocks all critically overpriced and now rapidly losing momentum), commodity shock, and Fed hawkishness.” He concluded that we haven’t yet seen the bottom. Having pumped vast amounts of liquidity into the world economy to stave off the deflationary effects of the pandemic in 2020, central bankers were shocked by the firm inflationary response. They responded by tightening monetary policy – the usual precursor of recessions. It’s important to note that this move pre-dated the Russian invasion of Ukraine with its resultant economic disruption, and even more important to note that the conflict in Ukraine has fundamentally changed the rules of the economic game we had become used to. Zoltan Pozsar of Credit Suisse has written that, in recent decades, “the EU paid euros for cheap Russian gas, the US paid US dollars for cheap Chinese imports, and Russia and China dutifully recycled their earnings into G7 claims.” The problem is that global supply chains work only in peacetime, “but not when the world is at war,” Pozsar notes. While Russia is currently being forcibly disentangled from trade with the west, China may decide to voluntarily and slowly remove itself to avoid the shock of aggressive disentanglement should its cold war with Taiwan ever turn hot. Key monetary indicators remain recessionary. In the US, money supply is growing at a slower pace than inflation, meaning the real quantity of money in the economy is falling. The yield curve has just inverted, meaning short-term (two-year) rates of interest exceed long-term (10-year) rates. For several decades, this has been an unerringly accurate harbinger of recession. Unfortunately, central banks remain in tightening mode for those wanting equity markets to lift as inflationary pressures prove to be more than just “transitory.” They say, “Don’t fight the Fed” (the Federal Reserve) and with good reason. Caution is warranted. There are other challenges facing equities. On previous occasions over the last two decades, the depth of downturns has been eased by the fact that not all large economic blocs have been in recession at the same time. In the wake of the Global Financial Crisis, when the western world was in deep recession, strong growth in China helped ameliorate the global impact of the recession and accelerate its ending. Today, all major economic blocs are simultaneously threatened by recession, which risks making this recession deeper and longer. What might signal an equity market bottom? I’ll be looking for a combination of value, investor sentiment, and a change in central bank behaviour. Share prices would need to drop sufficiently to be reasonable value. In 2000 and 2007, this required price drops of the order of 50 percent or greater. Speculative sentiment among investors would need to be replaced by the cold fear that characterises true market bottoms and central banks would need to replace tightening with easing. A halting of central bank tightening would certainly trigger considerable euphoria. But, having been too slow to tighten, central bankers cannot risk their diminished credibility by taking their feet off the monetary brake before inflationary pressures have been well and truly suppressed. Remember: the Nasdaq crash kept deepening two decades ago, even after the Fed had started aggressively cutting interest rates. So, is it safe? I don’t think so. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

The absence of a global baseline for reporting sustainability-related information is a concern for many, as the number of signatories to a global call-to-action on the matter demonstrates, writes Fiona Gaskin In late August, 65 companies, investors, and professional accounting firms from around the world added their voices to the call for standard-setting efforts to more closely support a global baseline for reporting sustainability-related information. All were signatories to a statement issued jointly by the International Federation of Accountants, World Business Council for Sustainable Development, and Principles for Responsible Investment, seeking to establish greater compatibility between the concepts, terminologies, and metrics in use in current draft standards for sustainability reporting. The statement acknowledged the important work of the International Sustainability Standards Board, US Securities and Exchange Commission, and the European Commission, together with the European Financial Reporting Advisory Group, in their efforts to advance sustainability reporting. The number of organisations supporting the call for the convergence of standards demonstrates, however, that the absence of a global baseline for reporting sustainability-related information is a concern for many corporates, financial institutions, and professional services organisations. The problem is very real. When various jurisdictions and standard-setters issue concurrent, but differing, standards, the users of those standards are left with varying frameworks, which can be costly and inefficient to interpret and implement. These efforts, while well-intentioned, can create confusion by adding more noise as reporting multiplies, but with different standards and objectives. A fundamental question for those setting standards and regulations is the question of whether or not reporting should be focused on information useful to investors (i.e. the enterprise value), or information useful to a wider group of stakeholders (i.e. the impact value). Enterprise value primarily focuses on the impact of environmental, social and governance (ESG) issues on business—in other words, how does the world affect the organisation? Impact value focuses more on the impact the organisation has on the world around it. Both enterprise and impact value offer information that can help to hold companies accountable for their actions—whether that is to maintain or create value, or to minimise negative impacts on the planet and society. Indeed, it is possible to argue that there is really no practical difference between these two values, and that the exposure draft of the International Sustainability Standards Board’s general disclosure requirements standard already provides a few good examples. This is because it is reasonable to expect that a business operating in a way that has a negative impact on the planet and its people will—in the short-, medium- and long-term—have a negative impact on the business itself and, therefore, on its enterprise value. In the long run, which is where sustainability standards focus, enterprise value and impact align. We can see first-hand that the proposed range of emerging standards are already proving to be a challenge for corporates. To start, there is the difficulty in simply gaining clarity on the reporting landscape—what has to be reported on, and by when. Once this has been established, the need arises for an exercise in understanding the crossover between reporting obligations—in the area of metrics, for example. These requirements then need to be assessed against what the organisation is actually doing and reporting. This last step typically results in an action plan which requires time and resources to address the underlying actions. While the statement calling for stronger alignment of regulatory and standard-setting efforts around sustainability disclosure has wide-ranging support, those creating the regulations and standards will ultimately need to continue to collaborate and respond to the call to action. Given that we are at the infancy stage of sustainability reporting when compared to financial reporting, it would seem like such a wasted opportunity to create complexity when standardisation and transparency are what is needed. Fiona Gaskin is Environmental, Social and Governance Leader for Assurance and Reporting at PwC Ireland

With the launch of ‘The Garage’, Pfizer Global Business Services Dublin is helping accounting trainees discover how they can apply digital technology to make their work faster and easier It started with a conversation between colleagues about how their profession might evolve at a time of immense digital transformation, and how they might harness this transformative power to support their fast-growing Dublin enterprise. Aoife Allen, FCA and Senior Director with Pfizer Global Business Services Dublin (GBS Dublin) recalls: “It was three years ago, and we were thinking about how we would be working in the future. I remember the question was, ‘what will our future colleague look five or 10 years from now?’” At the time, Albert Bourla, Chair and CEO of Pfizer Inc, had set a challenge for the organisation globally to “win the digital race in pharma,” and Allen and her colleague John Anglim were overseeing a successful graduate programme for Pfizer GBS Dublin in association with Chartered Accountants Ireland. “Our graduate programme was really starting to ramp-up then, in terms of numbers—a cohort of younger colleagues who had grown up with digital technologies, and we wanted to find a way to help them explore how we could use digital technology to make our own processes more efficient and effective, with an enhanced control environment.” ‘The Garage’ – a digital innovation program So began ‘The Garage’, a one-hour weekly session, during which Chartered Accountant trainees were encouraged to explore how they might use digital technologies to make their work more efficient and easier to manage. “We challenged them to come up with a project idea, and then to build it. It was about teaching our graduates how to think differently and pass their learnings on to the wider organisation, so that we could harness the power of digital to improve how we worked together within the organisation,” John Anglim, Director, Pfizer GBS Dublin, explains. The Garage is an innovative applied learning program, developed and led by Pfizer GBS Dublin colleagues Colin Byrnes, Director of Global Process Transformation, and Lorna Flanagan, Director Statutory Reporting CoE. Nurturing the digital mindset “The idea behind the program was really about recognising a need to nurture and develop our graduates’ skill sets in working with digital tools and technologies as they progress through their accountancy training,” Colin Byrnes explains. “Our Garage sessions take our graduates through concepts such as design thinking, analytics and problem-solving, as well as introductions to some of the technologies we use, like Alteryx, Tableau, Dataiku and Power Automate.” As Lorna Flanagan sees it, The Garage is about equipping the accountant of today for their evolving role as the ‘accountant of the future’. “The role of the accountant has really moved on from repetitive tasks to providing higher value-add services,” she says. “Our hope is that The Garage will set our graduates up to support problem-solving at Pfizer GBS and also enhance their accountancy training experience, so that we can support them to become our ‘colleague of the future’.” Impressive results So far, The Garage has yielded impressive results, with participants using new technologies, like Robotic Process Automation, Visualisation and Predictive Analytics, to build innovative solutions for Pfizer GBS Dublin and the wider organisation. One such participant is Reza Shahrokhi, as Aoife Allen explains: “Reza’s project concerned an incredibly time-consuming process that was used by managers right across Pfizer to review Authorised Signature Limits (ASLs). “Every year, these managers had to coordinate the review of thousands of ASLs on large Excel files via email. It was an incredibly time-consuming and manual process and, through his participation in Garage, Reza found a solution that was adapted for use across the entire organisation.” Shahrokhi’s solution used Power Automate, a tool that integrates Microsoft applications such as Excel, Outlook, Teams and more, to simplify the ASL review process. “He effectively removed emails from the process, collating responses from managers in seconds and automatically updating files, reducing errors and time for follow-up,” explains Flanagan. “Reza presented his project to GBS Dublin leaders and departments, showcasing his work at a GBS Dublin Innovation Forum where he was awarded one of 10 Innovation Awards in 2021. Reza really exemplified the Pfizer goal to win the digital race in pharma by making our work faster and easier. He explored and defined the problem and leveraged technology to improve the efficiency and effectiveness of a manual process.” Automating journal entries Another successful Garage project by graduate trainee Kate Connell leveraged digital technology to automate the manual month-end journal entry process. “Kate’s project explored a recurring issue whereby a manual journal had to be booked monthly to reclass original banking entries in the SAP accounting system to certain division- or market-coded accounts,” Lorna Flanagan explains. “The process was taking two hours to post manually each month. By navigating and preparing a ‘process flow map’ and exploring the functionality of the Alteryx tool, Kate was able to apply a digital workflow to automate the preparation of the final journal.” Connell’s project was showcased to GBS Dublin leadership and, as a result, different departments were able to leverage the technology to automate repetitive manual journal entries. Digital workflow solution Ian Banahan, meanwhile, used his participation in Garage to identify a digital workflow solution for an important financial supply chain process. “Graduates who take part in The Garage are asked to identify a work activity they see as relatively simple but feel could be improved. The idea is to create a ‘focus’ for practical learning during the Garage sessions,” explains Colin Byrnes. “In his day-to-day work, Ian was involved in a process whereby the GBS Dublin team calculates and communicates critical financial information to country teams supporting the financial global supply chain and distribution of products. “While the process was robust and utilised the latest digital technologies to help calculate processes, Ian could see that there was still a lot of manual communication involved—via emails, for example.” As part of his Garage project, Banahan documented the flow of information exchange involved in the process, uncovering challenges with information tracking and management. “Ian used the Garage network to identify digital workflow tools that could potentially address these issues, assessed them and drafted recommendations. He presented his findings to GBS Dublin leadership and got approval to move ahead with the project,” says Byrnes. “Since then, the Global Process Lead responsible for this area has developed the proposal further and the plan is to start implementing Ian’s solution by the end of this year.” The future of Garage Originally introduced in 2021, the 12-week Garage programme is now entering its third cycle and, for the first time, will be open to all Dublin GBS colleagues in addition to graduate trainees. For Aoife Allen, the success of the initiatives is a point of pride. “I am very proud of The Garage. A lot of the projects that have come out of it have brought real value to the organisation, and to our day-to-day work as Chartered Accountants and financial professionals,” she says. “These accounting problems and projects are so specific to the activities we are involved in that, really, only we can fully understand and solve them. “By giving our graduates—and now our wider team—the tools they need, they are able to look at accounting processes and say with confidence, ‘I can automate this process, and then spend my working time using the information it’s giving me to carry out work that is far more valuable. “They are effectively solving day-to-day end-user problems and that is empowering, because it encourages them to think differently about how they, and how we as an organisation, approach our activities.” History of innovation Pfizer has a deeply rooted history of innovation in Ireland. One of the first pharmaceutical companies to establish a base in Ireland, the organisation celebrated its 50th anniversary here in 2019 and now employs 4,000 people at five locations in Cork, Dublin, and Kildare. GBS Dublin was established in 2003 and provides end-to-end financial accounting services, compliance oversight, and business transformation support to Pfizer operations spanning 150 markets worldwide. As such, says Allen, GBS Dublin acts as Pfizer’s own ‘in-house’ accounting firm with the same high-value capability and talent resource. “That is how we see ourselves, and what we have responsibility for are the complex, high-risk and knowledge-based accounting transactions that support Pfizer’s financial operations globally as well as regionally here in Ireland,” she says. GBS Dublin is also among the biggest employers of Chartered Accountants in the Irish market outside the Big Four accounting firms. “We are very fortunate to have access to such a big pool of very talented candidates who have a really good reputation internationally,” Allen says. “We have a young, qualified, educated, and diverse workforce. We have many different nationalities here; people who speak many different languages; who have experience in different local Generally Accepted Accounting Principles. “This means that we are able to provide an international organisation with financial support from here in Dublin, and we also now manage in-market colleagues responsible for statutory and fiduciary duties.” Evolving role of the accountant For Allen, who grew up in Wexford and trained as a Chartered Accountant with PwC, her time with GBS Dublin has allowed her to carve out a varied and satisfying career path. “I joined GBS Dublin 16 years ago as an accountant after living and working in Australia for a while after qualifying. Since joining, I’ve changed roles eight times. I have had so many opportunities. “After joining as an accountant, I became team lead, and then regional team lead, and progressed from there to a director role and, most recently, senior director, with colleagues from 41 countries reporting into my organisation.” In the years since she began her own career, Allen has also borne witness to the evolving role of accountants in all sectors. “How we do our job on a day-to-day basis now is very different to how it was when I trained. Great change is underway within the profession of accountancy and that change is being driven by digital technologies,” she says. “We have access now to digital tools—not just these big Enterprise Resource Planning systems like SAP and Oracle—but also end-user technologies like Alteryx, Dataiku and Power Automate. These tools are allowing accountants to carry out our work in new and different ways and creating the potential for real innovation.” Breakthroughs that change lives This innovation is at the heart of the GBS Dublin ethos and the driving motivation behind The Garage and other digital initiatives. “We have an amazing wealth of talent here in our own workforce in Dublin and, at the same time, access to these emerging digital tools that can really transform the way they work and add value to the wider organisation,” says Allen. “We reckon about 75 percent of the people working for Pfizer GBS Dublin have a qualification in accountancy, tax, or another high-value profession. Our colleagues are highly qualified and highly capable people, and we are part of Pfizer; a company whose purpose is to drive ‘breakthroughs that change patients’ lives’.” “Our own purpose and responsibility here at GBS Dublin, as I see it, is to employ that same ethos as an enabling function to the wider organisation and—just as our colleagues in science and manufacturing do—to use innovation to drive breakthroughs. “Being a truly innovative organisation involves learning to do things differently, being open to change, and being prepared for a future of constant change.” For Allen, meanwhile, how she approaches her leadership role as a Senior Director at Pfizer Dublin GBS is also changing. “What I’m learning is that, as a leader, you have to get out of the way. You have to give people the space to come up with ideas and to share them. You have to ask everyone to contribute, to listen and encourage all of their ideas. “That means listening equally to everyone in a meeting, from graduate right up to director level. I want to hear what the graduate has to say as much as I want to hear what the director has to say. You must listen, because absolutely everyone can bring something really valuable to the table.”

In a candidate-led market, how an organisation is perceived can be critical to its ability to attract the very best professionals. Although employers can’t create their own brand, they can do a lot to influence it. Dr Mary E. Collins explains how When recruiting, your reputation or ‘employer brand’—the stand-out differentiator for your organisation—has never been more important. This renewed focus on employer brand can be attributed, in part, to the expectations of the younger generations, who are influenced by an organisation’s reputation and peer reviews. These reviews—and the perception of an employer’s brand they help perpetuate—are a key disruptive element in recruitment, particularly with the growth in influence of review and recruiting websites, such as Glassdoor and Indeed. The Labour Force Survey results from the Central Statistics Office for the second quarter of 2022 put the employment rate in Ireland among 15- to 64-year olds at 73.5 percent – a record high. In this context, an organisation’s ability to attract and retain talented professionals in a market at near full employment—one in which people naturally have greater choice—does more than allow it to compete. It affects its reputation among all stakeholders, from customers and clients to potential employees. What is an employer brand? The term ‘employer brand’ was coined in 1996 by Professor Tim Ambler of the London Business School, who defined it as “the package of functional, economic and psychological benefits provided by employment and identified with the employing company.” The Chartered Institute of Personnel and Development (CIPD) defines an employer brand as “a set of attributes and qualities—often intangible—that makes an organisation distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform best in its culture.” It is important to note, however, that an employer brand is created by other people’s perceptions of an organisation. An employer cannot directly create its employer brand, it can only influence it. The power of employee review In the past, an employer brand (even if not described as such) was based mainly on the reputation of the employer, with very little influence from other sources. Now, with the growth of digital voices through social media and review websites, employees—past and present—are key players in the creation of employer brands. We have seen this particularly with employee reviews, which has been a major driver of change. People can post honest, anonymous reviews about their employers, describing the on-the-ground experience from an ‘insider’s perspective’. Faced with this, organisations must become more accountable for their behaviour—or risk being rejected by potential talent. Candidate-led recruitment In recent years, the approach to recruitment has shifted from ‘company-led’ to ‘candidate-led’, which is evident in the interview process alone. Employers are now reviewing their interview procedures, asking if they suit candidates, and asking recent hires what they would change about the experience. Company-led recruitment This is a top-down approach, where a position is advertised and candidates apply. The information shared about the advertised position is limited. The balance of power is with the hiring organisation. This approach is summed up by the interview question: “Now tell me, why should I hire you?” Candidate-led recruitment This flips the model by guiding potential candidates to make more informed decisions about whether to apply for a role. This approach encourages candidates to reflect on their ‘fit’ for the job by providing them with detailed information on the role and organisation prior to applying. Developing a strong employer brand There are eight key steps to developing a strong employer brand, which will give you a competitive advantage and set you apart in a crowded employment market. Step 1. Define your unique selling point Organisations invest resources in developing and promoting a unique selling point (USP) for their customers, clients and even potential employees. The USP is what makes an organisation distinct, setting it apart from its competitors. An employer’s USP will inform its employer brand, responding to candidates’ desires to join teams that share their priorities and values. This could be: “trusted advisor” “provider of excellent technical service” “friendly, responsive and flexible” “creative, cutting-edge and innovative” “award-winning agency” When defining or refining your employer brand, start by articulating your USP. Larger organisations may wish to engage specialist brand agencies, while SMEs can do this through insightful, exploratory conversations with their stakeholders. Ask your existing employees why they joined the organisation, for example, and what makes the business different to its competitors. You can also ask clients for testimonials which can be published online, thereby elevating your USP, not only to prospective clients, but also to future employees. Step 2. Communicate your purpose An organisation’s strategy is a core part of its employer brand and should be included in employer brand communications. Share strategy and purpose to attract the right people. For example, if the strategy is for growth, excellence and expertise, this needs to be represented in the offer to potential employees who are looking for new opportunities and a defined career trajectory. Step 3. Identify who you need to hire Define your recruitment needs. What are the skill sets you need to achieve your goals? Can they be introduced by training existing employees? Evidence of strong succession planning not only instils confidence in shareholders, but it also showcases your employer brand to current and prospective employees. Step 4. Understand your ideal candidates Find out as much as you can about your ideal candidates. What really motivates and excites them? What can you do to drive them to your organisation? The following can be used to source information on target and prospective candidates: LinkedIn Data can be captured on your target candidates’ education and qualifications, the professional bodies they are members of, and the LinkedIn groups they choose to join. Research Conduct research into new and existing workplace generations—what is the difference between Baby Boomers, Millennials and Generation Z? This will yield information on their motivators, drivers and values, which can inform your hiring strategy. Your team Talk to your existing high-performing employees to understand their interests, professional alignments, and networks. Your networks Use your own professional and social networks for further insights from outside your own organisation. Psychometric tools These can be used to track the personality traits and aptitudes of the best performers and can inform your thinking on ideal, as well as prospective, candidates. Step 5. Define your employer value proposition An organisation’s employer value proposition (EVP) is the distinct set of benefits (financial and otherwise) an employee receives in return for the skills, knowledge and experience they bring. The CIPD defines the EVP as “describ[ing] what an organisation stands for, requires and offers as an employer.” It provides greater consistency—to an organisation’s recruitment advertising, for example. Using the data gathering techniques described above at Step 4, you can develop a bespoke EVP for your ideal candidates. To create a successful EVP, consider the following: design around attributes that attract, engage and retain the talent you are seeking; be consistent with the strategic objectives of the organisation; identify what is unique to your organisation and distinct from your competitors’ offerings. The best EVPs involve synergies between the organisation’s corporate brand and its employer brand. Hubspot’s EVP, for example, states: “We believe the people we work with are our biggest perk. That’s why our people operations team works hard to create an amazing experience for candidates and employees, every step of the way.” As demonstrated by Hubspot’s EVP, it is important that current employees feel as much of a connection to the EVP as potential hires. Your current employees should feel aligned to your brand. Maintaining a strong employer brand demonstrates commitment to invest in talent, it builds trust, loyalty and credibility, and differentiates you from competitors. By making your EVP public and transparent, prospective employees are far more likely to trust what a company’s current employees say about it than what they read in recruitment advertising. To attract talent, employers must rely on employee engagement and advocacy from the ‘inside out.’ Employers cannot publicly offer what they do not privately provide. Step 6. Understand your employer brand As well as analysing feedback from current employees, a systematic way of evaluating your employer brand is to use a tool like the Employer Branding Measurement Dashboard, created by Elizabeth Lupfer of the Social Workplace (thesocialworkplace.com). It identifies key metrics for evaluating employer brand, such as: HR metrics, e.g. retention/attrition rates, number of applicants per position, cost per hire; awareness metrics, e.g. percentage of target audience who are aware of the organisation; differentiation metrics, e.g. employer brand value/effectiveness. Step 7. Enhance your employer brand There are some key areas of focus when enhancing your employer brand. It is particularly important when losing staff, or finding it hard to recruit new people, that each area is reviewed, and appropriate actions are taken. For example: Culture Consider a more ‘people-focused’ culture, e.g. offering flexible work arrangements. Presence in the marketplace Increase your visibility to ideal candidates: attend conferences, contribute to LinkedIn conversations, engage in expert positioning and thought leadership, enhance the organisation’s media presence. Candidates’ experience Improve response times to candidates, e.g. introduce a time limit to get back to candidates following an interview and stick to it. Step 8. Communicate your employer brand Communicating your EVP should be central to communicating your employer brand. This can be done through many channels, such as job advertisements, the organisation’s website, or its social media platforms, for example. The EVP should be obvious from the organisation’s website, which should clearly reflect the company’s culture. For example, if ‘technical excellence’ is one of the key aspects of the employer brand, show this with examples of technical projects and thought leadership. Ideally, the website should have a ‘Why work for us’ page, which is most effective when current employees share their positive experiences, highlighting the EVP. Clearly communicate the benefits you offer employees, for example: flexible working arrangements; training and development supports; annual and other leave schemes; pension schemes and employer contributions; health insurance group schemes and contributions. Conclusion For employers seeking to attract talented professionals, a clear employer brand, which is supported by the views of current employees, is a critical starting point. A strong employer brand gives you a competitive advantage, setting you apart in a competitive, candidate-led employment market. Dr Mary E. Collins is a Chartered Psychologist and Senior Executive Development Specialist at the RCSI Institute of Leadership, and author of Recruiting Talented People.

The negativity directed at numerous high-profile politicians in recent months calls into question their role in governing professional conduct, but who should guard the guards themselves? asks Dr Brian Keegan There is an old saying from classical wisdom that you should only speak good of the dead, and Boris Johnson probably knows the Latin translation. Of course, the former British Prime Minister is happily anything but dead, even though his political career might be. One of the more surprising aspects of Johnson’s political demise has been the extent to which the normally moderate commentariat turned, not just on his premiership, but also on the individual. Calm reputable voices like The Economist (“he lacked the moral fibre”) and the Financial Times (“a wanton disregard for rules and for the truth”) delivered scathing editorials castigating the man and his morals to an extent typically reserved for the tabloid response to sex offenders. Ordinarily, it is the dignity of the office that protects the incumbent from the worst slings and arrows. Once their office has been lost, however, they become fair game, as Donald Trump and Nicolas Sarkozy, both former presidents of their respective countries, know well, having shared the ignominy of rigorous investigations into their conduct while in office. You do not need to hold a particularly exalted position, as the former Irish Minister of State Robert Troy will attest, to be a casualty of public concern over your actions. There can also be public unease where former office holders have used their previous positions in a manner perceived to be abusive. EU ombudsman Emily O’Reilly has called this the “revolving door of influence.” Despite all the regulation and governance guiding so many aspects of life (and Chartered Accountants are particularly sensitised to this), we don’t seem to be able to ensure good behaviour among our elected representatives, public officials and expert advisors. So, who regulates the regulators? Chartered Accountants will be familiar with the activities of the Institute’s Professional Standards department, but perhaps less so of the extent to which the Institute itself is under the scrutiny of the Irish Auditing and Accounting Supervisory Authority (IAASA), the Financial Reporting Council (FRC) and so on. Nor might they be aware of organisations such as the Monitoring Group, an international consortium of the great and the good, scrutinising the development of the auditing and ethical standards to which accountants must adhere. All of these regulators and meta-regulators are creations of the political system. The star of government regulation can fall as well as rise. The FRC is currently being reconstituted as the Audit, Reporting and Governance Authority in the UK. In Ireland, the Corporate Enforcement Authority has replaced the Office of the Director of Corporate Enforcement. In both instances, these authorities are granted additional powers and autonomy at the behest of politicians. There is also the sin of political omission. Where is the Northern Ireland Assembly to ensure that devolved regulation is appropriate to the needs of Northern Ireland? This is why there should be no sympathy for any politician caught in breach of standards or regulatory compliance. They are directly responsible for the regulatory environment in which Chartered Accountants and other financial professionals earn their living. It is intolerable that their conduct be in breach of the kind of standards they require us to observe. Another Latin tag for this, with which Boris Johnson may also be familiar, is “Quis Custodiet Ipsos Custodes?” — “Who Guards the Guards Themselves?” It cannot be left to journalists from the Financial Times, Handelsblatt, or The Economist to do the guarding. All of the negative attention garnered by politicians over the summer might not change the future behaviour of elected representatives holding a duty of care over professional conduct. Dr Brian Keegan is Director of Advocacy and Voice at Chartered Accountants Ireland

As the dust settles on the Government’s recent Budget, Norah Collender and Brian Brennan consider the tax measures announced for businesses in Ireland Although the cost of living crisis dominated Budget 2023, announced by Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath on 27 September, it also heralded some interesting tax measures for business. The finer details of these measures—along with possible additional business tax measures—will be set out in the Finance Bill, due to be published on 20 October. For now, here is a rundown of what we know so far. R&D tax credit & KDB Budget 2023 outlines amendments to the payment provisions of the Research and Development (R&D) tax credit, aligning it with new international definitions of refundable tax credits. The changes include the removal of caps on the payable element of the credit and a new fixed three-year payment system. Under the new payment system, a company will have an option to request either payment of its R&D tax credit, or for it to be offset against other tax liabilities. The first €25,000 of the credit claim will be payable in the first year. This will provide a welcome cash-flow benefit for small companies, which make up two-thirds of claimants. The Knowledge Development Box (KDB) regime was due to expire at the end of this year, but Budget 2023 has extended the scheme for a further four years to accounting periods commencing before 1 January 2027. The extension is welcome, but companies need a long-term incentive to make investment decisions, so it would be preferable if the regime was to become a permanent fixture of the tax system. The KDB will be impacted by changes under the Organisation for Economic Co-operation and Development’s Pillar Two rules for a global minimum effective tax rate of 15 percent. The Government is taking initial steps to prepare for the OECD changes by increasing the effective tax rate of the regime from 6.25 percent to 10 percent (subject to a Commencement Order). In our view, more amendments will be required to ensure the KDB’s viability as an incentive in light of Pillar Two. It is also worth noting that, for companies not impacted by the proposed minimum effective tax rate of 15 percent, the increased rate of 10 percent will significantly reduce the benefit of the regime. Given the low numbers currently availing of the KDB, this change is unlikely to help with the uptake of the relief. Film relief/multimedia industry The film corporation tax credit was scheduled to cease on 31 December 2024. Recognising the long production cycle for audio-visual productions, however, Budget 2023 has extended the credit to 31 December 2028. Minister Donohoe has also signaled an intention to explore opportunities to encourage international players in new and innovative multimedia industries to locate to Ireland. Bank levy The bank levy, due to expire in 2022, is to be extended to the end of 2023. The levy was originally designed to produce a fixed annual yield of €150 million, but just €87 million will be raised in 2022 due to the exclusion of Ulster Bank and KBC Bank on their exit from the Irish market. The same yield is projected for 2023. The future of the levy is being assessed by the Department of Finance as part of the Retail Banking Review. Investment products and section 110 The Government will establish a working group to consider the taxation of funds, life assurance policies, and other investment products. The Commission on Taxation and Welfare suggested that such a review should consider how to simplify the tax treatment of investment products, and identify opportunities for horizontal equity and neutrality in the tax system when it comes to investment decisions. Currently, funds and life assurance policy providers are obliged to deduct 41 percent tax on both income and gains, which is higher than the rate of income tax and capital gains tax. It is hoped that the working group will focus on the scope and possible impact of reducing these rates. Minister Donohoe also announced plans to review the section 110 regime. The Commission on Taxation and Welfare’s report referenced the section 110 regime in the context of the role of institutional investors in the Irish property market. However, acknowledging that the regime applies to a broader range of assets than debt secured on Irish property, the report went on to recommend a wider review of the regime. Agri-business measures Budget 2023 outlined the extension of several agricultural reliefs set to expire at the end of this year. The proposed extensions are dependent on the outcome of negotiations at EU level on the Agricultural Block Exemption Regulation. Stamp duty reliefs for young, trained farmers and farm consolidations are to be extended to the end of 2025. Farm restructuring capital gains tax relief is also to be extended until the end of 2025. Stock relief enhancements for young, trained farmers and registered farm partnerships are being extended until the end of 2024. A new accelerated capital allowance scheme for the construction of slurry storage facilities is set to be introduced from 1 January 2023 and will run for three years.

The Irish economy needs a strong pipeline of accounting talent to support both FDI and domestic business, and the Leaving Cert Accounting syllabus is key to achieving this. Pat O’Neill and Brian Feighan explain why A growing number of Leaving Cert students are choosing to study accounting, but at a time of rising demand for accountancy skills in Ireland, more must be done to encourage an even greater number of second level students to pursue a career in the profession. Figures from CareersPortal.ie show that the number of second level students studying accounting for Senior Cycle in 2021/22 was the highest it had been in a decade, revealing a 70 percent rise at higher level since 2011. Although this trend is welcome, Pat O’Neill, President of Chartered Accountants Ireland, believes that more could, and should, be done to encourage second level pupils to study accounting for the Leaving Cert at a time of significant “capacity constraints” within the profession, and to better reflect the reality of what the profession entails in today’s world. “The pipeline of new talent entering the accountancy profession is not sufficient to fill the job opportunities available and Ireland is experiencing a real shortage of professionally qualified accountants,” O’Neill said. “Our economic pillars of large foreign direct investment and successful domestic businesses require appropriate levels of accounting talent. There is a real need to encourage more young people to pursue a career in the field to help address this shortage.” Critical shortage Accountants are on the Critical Skills Occupations List, compiled by the Department of Enterprise for professions experiencing a shortage of qualifications, experience or skills required for the proper functioning of the economy. The Northern Ireland Executive has also listed accountancy as an in-demand skill in Northern Ireland. “At a time when the Government is looking to address the vulnerability of tax revenues amid a slowdown in the global economy, it is perhaps surprising that there was not a greater focus in Budget 2023 on addressing some of the structural issues here at home, which are potentially undermining Ireland’s attractiveness as a continued location for foreign direct investment,” Pat O’Neill said. “Among these issues are the availability of suitable rental accommodation for workers and the availability of appropriately skilled staff to support such inward investment.” The key skill sets required to address the latter lie in accounting and finance, O’Neill said. “New multinational operations establishing a base here need appropriate in-house finance functions and capacity in professional services firms to support their transactional and regulatory compliance needs,” he said. “In addition, we have a significant and vibrant shared services sector in Ireland, which operates in many instances with a focus broader than pure transactional activity. Many of the organisations in the sector here operate EMEA or global centres of excellence, already employing large numbers and contributing significantly to the corporate tax base. Clearly, we have to look at growing the ‘funnel’ of entry into the accountancy profession.” Fit for purpose A “fundamentally important” part of addressing the shortage of accountancy skills in Ireland will be ensuring that the Leaving Cert Accounting syllabus is modernised for developments since the 1990s when it was first introduced, O’Neill said. “It is imperative that the syllabus is made fit for purpose in the 21st century and that it introduces young people to the breadth of the modern accountant’s role, engages them, and ignites interest in the subject as a career choice for school leavers. Otherwise, some students may be deterred from a career in accounting, and we won’t have the bench-strength to support businesses on this island,” he said. Chartered Accountants Ireland is a member of the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I), which last year made a submission on this matter to the Department of Education, including the findings of its review of the current Leaving Certificate Accounting syllabus. “Subjects taken at Senior Cycle play a key role in influencing the third-level and career choices of students, so Senior Cycle Accounting offers a unique opportunity to engage, inspire and offer a career pathway, not just to the next generation of accountancy professionals, but to anyone with an interest in finance or enterprise,” said Brian Feighan, FCA, Chair of the CCAB-I Working Group for Promoting the Profession, and founder and CEO of LearnAltus, a provider of financial and executive education solutions. “Ireland needs a strong pipeline of talented students who are keen to progress their studies and careers in accountancy, through both apprenticeship routes and third-level pathways. It is essential that the Leaving Cert Accounting curriculum and examinations reflect the skills of the modern accountant and inspire the next generation of accountancy professionals, entrepreneurs and business leaders,” he said. Language of business Accountancy is the “language of business”, Feighan added, and financial literacy and financial competence are key drivers of economic prosperity across all levels of society in Ireland. CCAB–I views the second-level teaching of accounting skills at Senior Cycle as highly valuable and strategically important for the Irish economy and has conducted its review of the current Senior Cycle Accounting syllabus to include the higher and ordinary level examination papers and solutions from recent years, as published by the State Examinations Commission. “Working with the key stakeholders in education, our goal is to help deliver a new Senior Cycle accounting specification that reflects the skills of the modern accountant and inspires the next generation of accountancy professionals, entrepreneurs and business leaders,” said Feighan. “The current Leaving Cert Accounting syllabus was introduced 25 years ago, and we have seen very significant changes in the profession in the intervening period. Take, for example, the impact of technology on the profession. Advances in artificial intelligence, robotic process automation and data analytics have transformed the role of accountants, enabling them to focus on their role as key advisors on major business decisions.” Skills such as critical thinking, problem-solving and communication are now more central than ever to accountants’ work, Feighan added, as is guiding companies in measuring and reporting on sustainability. “In our submission to the Department of Education, we outline how the syllabus can be reinvigorated to give Senior Cycle Accounting students greater insight into these trends. We have seen encouraging work undertaken in this vein with the new Junior Cycle Business specification, and this more rounded approach will help attract even greater numbers towards the accountancy discipline from an early age,” he said. Pace of progress Notwithstanding the growing number of Leaving Cert students choosing to study accounting, O’Neill is nevertheless concerned about the pace of progress at secondary level. “The needs in Ireland and among Irish businesses for suitably qualified accountants exists in the here and now. There needs to be a real sense of urgency from all parties on bringing our accounting education syllabus into the 21st century,” he said. “We are very supportive of the desire of the Department of Education to do this, including recognition of the time required to redraft syllabus content and the appropriate training requirements necessary for our teachers to be in a position to deliver the new syllabus. The profession is willing to be involved in helping this to become a reality.” Chartered Accountants Ireland educates more than 7,000 students in an academic year and has more than 31,000 fully qualified members on this island and around the world. To support engagement with accounting in schools, in 2019 Chartered Accountants Ireland launched the Boot Camp programme for Transition Year and Senior Cycle students (for more, see page 27). Now in its third year, the programme is used by close to 4,500 students in all 26 counties. Collectively, these students have completed over 63,000 online lessons. “Accountancy has never been as accessible as a profession, and Chartered Accountants Ireland is working to continue to build the talent pipeline to support growth across all sectors of the economy,” said Pat O’Neill. In addition to the well-established Training Contract pathway familiar to many, since 2009 Chartered Accountants Ireland has offered a flexible route, working and training with one of the many companies in different sectors that train Chartered Accountants through their dedicated graduate programmes. “There are many options for the next generation to join the profession, whether directly out of school via Accounting Technicians Ireland or after university or college,” said O’Neill.

As Ulster Bank and KBC ramp up plans to exit the market, retail banking in Ireland has reached a critical juncture with far-reaching implications for the wider economy, writes Elaine O'Regan In mid-August, an article appeared in the Financial Times, heralding a “once in a generation” growth opportunity for Ireland’s banks. Irish lenders were primed for expansion, the article said, amid rising interest rates and the exit of both KBC and Ulster Bank from the market, leaving behind €30 billion in loan books and one million customers. While the exits may be good news for AIB, Bank of Ireland, and Permanent TSB—the three remaining full-service high street lenders in the Irish market—the contraction of the sector is of wider concern. “Industry stakeholders face fundamental questions about the sector’s sustainability and direction,” Brian Hayes, Chief Executive of the Banking and Payments Federation of Ireland, said. “As it stands, the profitability of the retail banking sector in Ireland is among the lowest in Europe, measured in terms of return on equity. Irish retail banks must hold back an estimated €2.5 billion in additional capital for mortgages, impacting the price of products and the share valuation of retail banks.” These banks need to be profitable to generate organic capital, which is lent back into the wider economy to support jobs, businesses, and economic activity, Hayes said, and “this will require new and diversified sources of income as well as further efficiencies in operational costs.” The biggest challenge facing Ireland’s retail banking system now is the need to continue running core functions while also meeting a diverse set of needs among competing stakeholders. “Financial regulators place a strong emphasis on strength and stability, while shareholders need to focus on sustainable profitability,” Hayes said. “These demands and expectations are not necessarily mutually exclusive. However, there is a need to acknowledge and seek a means to achieve balance between stakeholder demands.” Retail banking review As government officials prepare to present the draft report on the Retail Banking Review to Minister for Finance Paschal Donohoe, TD, in the weeks ahead, Hayes called for an informed and open conversation between all stakeholders and “meaningful and effective dialogue”. “We need a viable, safe, innovative, and purpose-led retail banking system, which serves its customers, the economy and society. A stable and viable retail banking sector is a fundamental prerequisite to a well-functioning modern economy and society,” he said. A new discussion paper on consumer protection, published at the start of the month by the Central Bank, noted that structural changes in retail banking, including the withdrawal of Ulster Bank and KBC and branch closures by other retail banks, was impacting “availability and choice” for both consumers and small businesses in Ireland. The discussion paper is the first stage of the Central Bank’s review of the Consumer Protection Code. The Irish financial system has “extensive scale and reach” at both retail and SME level, it noted, including 5.4 million current accounts, €101 billion in credit to households, €22 billion to SMEs, and €2.64 billion payment transactions in 2021. As KBC and Ulster bank continue to progress market withdrawal plans announced last year, some one million customers will need to move their current and deposit accounts to new providers. The Central Bank was, it said, “closely monitoring” this mass account migration process, including assessing ongoing implementation plans at an individual firm and sectoral level to ensure the protection of affected consumers. CCPC submission In its submission to the public consultation for the Retail Banking Review first announced in July 2021, the Competition and Consumer Protection Commission (CCPC) expressed its own concerns about the impending increase in concentration levels in retail banking in Ireland. “With KBC and Ulster Bank closing, small businesses here will have access to just two full-service banks, while for consumers, there will be just three,” CCPC member Brian McHugh said. “When you have just two or three players in any market, you would generally have competition concerns, because the evidence shows that customers in these situations tend to be worse off, not just in terms of price, but also quality and innovation.” While there had been some entry into the market at product level—in mortgages and business lending, for example— the CCPC noted that much of this was being provided by non-bank lenders, and that there had been no entry into the market by a full-service provider and no indications that such entry was likely in the near future. It was therefore vital that public policy and regulation facilitate entry into market, the CCPC said; that the mandate of the Central Bank of Ireland be amended to include competition objectives; and that its revised Consumer Protection Code promote fair competition in financial services. The CCPC also called for an evaluation of the operation of the Bank Switching Code as part of the Central Bank review of the Consumer Protection Code, and that the Government engage at an early stage with the proposal for a European Digital Identity Wallet to maximise consumer engagement and protection. “What we want to see, ultimately, is a more competitive landscape for banking in Ireland where we have new entry into the market. We are not specific about exactly what that might mean. We don’t know what the right solution is, but what we do want is to have lots of different providers coming into Ireland, offering consumers and businesses a variety of products,” McHugh said. “We have to ask why we are not seeing more European players moving into the Irish market and competing here as they do in lots of other markets. There is a need for Ireland to be at the forefront of any efforts to promote the European banking market and make it easier for other players in Europe to move into the market here under common EU rules. “I don’t know if we’ll ever see another full-service provider coming into the market here and opening a full branch network, but ultimately, we need to have competition for both pricing and innovation.” Jobs in banking Central to the continued viability of the retail banking sector at a time of “evolving consumer and regulatory demands”, would be its ability to attract the skills needed with competitive pay and career opportunities, Brian Hayes said. “Retail bank employees and potential recruits are subject, under both Irish legislation and administrative orders, to the most restrictive remuneration conditions in the EU. They are clear outliers when compared with graduates and employees in financial services and a range of other sectors. This places Ireland’s retail banks at a considerable and growing disadvantage,” he said. “The skills composition within banks is evolving rapidly, and the normalisation of pay and employment conditions is needed in the sector to attract the skills and employees necessary for the provision of services expected by Irish consumers.” The Financial Services Union (FSU), meanwhile, wants an “open transparent model of engagement on the future of banking” involving all relevant stakeholders. “Stakeholder banking is common across the EU. A new governance framework involving workers and consumer directors on the boards of banks would put the voices of customers, business, and staff, at the centre of decision-making,” FSU General Secretary John O’Connell said. “This is a big strategic focus now for the FSU—and it isn’t just a trade union matter, it is something the Financial Conduct Authority in the UK has identified in its own regulatory approach, identifying ‘worker directors’ as one option for providers. “It is about having a sustainable banking sector that doesn’t trample over people for profit and the race for digital. That’s not to say that change won’t, or shouldn’t, occur. It is about how this change will occur. We don’t want to see announcements of sudden branch closures in the future and all that entails for staff and customers.” Digital challengers According to the results of a survey published in May by the Department of Finance, just one percent of people in Ireland have their main current account with a digital bank. Carried out as part of the Retail Banking Review, the survey of 1,500 consumers found that 97 percent conducted their main current account banking activities through a traditional retail bank. Despite this, however, close to one-in-five said they were using a digital provider for banking or payments at least occasionally. The main appeal of fintech providers compared to traditional retail banks is that they offer instant money transfers, free banking, and allow customers to split bills as well as providing a user-friendly app, the survey found. Fifty-eight per cent of fintech customers strongly believe that the services offered by fintech providers are a very good substitute for the services offered by more traditional banks, it said. “Speed, convenience, and simplicity are at the core of positive customer response to digital banking, and we can’t ignore the new players joining the market,” said Billy O’Connell, Head of Accenture’s financial services business in Ireland. Revolut, the UK-headquartered digital bank, officially launched as a bank in Ireland earlier this year, operationalising its European specialised banking licence here, while N26 is licensed by the German Central Bank, operating in Ireland on a European Passport. Dutch neobank Bunq has, meanwhile, secured Central Bank authorisation to launch an Irish IBAN, and also recently acquired Capitalflow, a specialist digital lender to businesses in Ireland. “Early traction in this market has been based around highly frictionless, digital-first experiences for payments, money transfers and features like money management across demographics in Ireland, but new digital players continue to face challenges for providing complex lending and highly regulated products,” Billy O’Connell said. “New players are driving enhanced and innovative propositions—shaping customer expectations in the market and tapping into this need for new ideas, but they aren’t necessarily replacing banking services. Most people retain traditional bank accounts for core activities, like receiving salaries and taking out loans, so incumbents locally still retain a large market share despite disruption.” At the same time, O’Connell said, traditional retail banks are investing in new digital offerings and capabilities, releasing high-end apps, and improving online banking services, to compete with neobank challengers. According to the BPFI, Irish retail banks have collectively spent more than €3 billion in the last five years on technology and innovation projects to deliver new digital services for customers. Synch payments Synch Payments, a mobile money app joint venture involving AIB, Bank of Ireland and Permanent TSB secured CCPC approval earlier this year. “The ability to make instant peer-to peer-payments, without the need for complex payee addition journeys, is a key customer need, and it is envisaged that Synch Payments will address this need, with all Irish customers being ‘auto-enrolled’, so that they can make payments using just their phone number,” Accenture’s Billy O’Connell said. To continue to be competitive in the future, however—particularly among younger demographics—he added that traditional retail banks would need to commit further investment to more advanced services, such as end-to-end digital account opening, digital accounts aimed specifically at “juniors”, share dealing, and cryptocurrencies. “Decades from now, the banks that will be successful will be those that shape their businesses continuously to the needs of customers, employees, and other stakeholders, honing their abilities to identify opportunity and innovate efficiently,” O’Connell said.

Even with all the talk of recession, sourcing talent remains a challenge for many organisations. Niamh O’Brien explains how a strong employer value proposition can help attract the best candidates The current landscape is a complex one for employers. Amid the headlines announcing lay-offs and the threat of recession, the SME Sentiment Index 2022, released recently by BDO and Ibec, found that 80 percent of the businesses surveyed were having trouble retaining employees and spending more time hiring new staff. On top of this, employee expectations are also changing, with increased demands for hybrid working, better work-life balance, and calls for salaries to rise in line with inflation. Retention and attraction While the term employer value proposition (EVP) may sound like a marketing ploy, having a strong EVP can actually be very important for businesses, especially in the current climate. In much the same way an employer will require a CV providing an overview of a potential candidate’s experience, employees want an EVP to give them insight into what a potential employer can offer them. And it’s not enough to just talk the talk. To retain talented people, companies must be able to walk the walk. A strong EVP that is truly reflective of their working environment, can help them to retain talented people. Quite often, however, even when a business has a wide range of benefits and a strong company culture, you will find that this is not articulated well through internal communication. An EVP can act as a reminder to the existing workforce of the benefits they have access to. How do you define your EVP? An EVP should be truly reflective of the key selling points an employer can offer. To start clearly defining your EVP, consider the following: What is your working environment? There is rising pressure on companies to offer flexible working options, including hybrid working arrangements. In addition, potential employees will want to know what onsite facilities are in place and what work–life balance “looks like” for existing staff. What is your company culture? Most businesses have found that their pre-COVID-19 working practices and culture have had to evolve and adjust. There is more focus now on how businesses handle environmental, social and governance, sustainability matters, employee wellbeing, and diversity, equity and inclusion. These topics should be detailed within the EVP to give employees insights into how the company’s working culture is brought to life through policies and practices. Are there career opportunities? Being able to demonstrate how training and development is approached, what career paths are in place, and how career progression is facilitated will all add to a genuine and robust EVP. What are your compensation and benefits? In the current competitive market, basic salary and a comprehensive benefits package is vital to attract new talent. Not only that, but it can also help to retain your existing employees. Once you have defined your EVP, the next step is to ensure that it is, not only accessible to existing employees, but can also be used as a marketing tool to attract new talent. EVP for accounting professionals Many young accounting professionals are initially attracted to an employer with the promise of a training contract, but what happens when the contract is finished? Ask yourself these questions: Can your company offer newly-qualified accountants the opportunity to work across a range of areas to help develop their skillset? Does the company offer secondments into client organisations, allowing staff to gain exposure to new industries? What long-term career prospects can you offer once the training contract finishes? How is career development fostered and nurtured in your organisation alongside exposure to different parts of the business? Answering these questions will help you to attract the best talent during your next hiring cycle. Ultimately, a strong EVP should act as an attraction strategy. It can be included on job specifications, outlined on a careers page, and explained during the interview process. Niamh O’Brien is a Director of Talent Management at BDO

The Digital Operational Resilience Act offers a unified approach to digital risk management in the EU, writes Guy Warren Wide-reaching system outages, rising cyber threats, and the disruption brought by the pandemic have put operational resilience in the digital space on the priority list for financial services regulators. To keep pace, the European Commission published its Digital Operational Resilience Act (DORA) on 24 September 2020. This legislative proposal merges several existing EU initiatives into one regulation. It aims to build on current risk management requirements for information and communications technologies (ICTs) developed by other EU institutions. DORA is expected to come into force sometime in 2022 and will provide clarity for EU financial regulators and supervisors tasked with ensuring that firms remain financially and operationally resilient through disruption. Implications for EU-based firms For firms operating in the EU, there are several implications to consider and prepare for before DORA comes into force. The Act will establish EU-wide standards for testing digital operational resilience, which currently sits strictly with each EU state nationally. Third-party ICT providers, including cloud service providers, will be regulated by one of the European Supervisory Authorities (ESAs). These authorities will be able to request information, issue recommendations and requests, conduct inspections and impose penalties, such as fines, for non-compliance. To prepare for DORA’s requirements, financial services firms will need to: identify any compliance gaps in their ICT systems; determine which of their third-party providers will be considered critical vendors and map their level of risk; implement a testing framework for digital resilience; and determine whether their current recovery strategies align with the standards set by the new regulations, putting plans in place to improve them where needed. Building a resilient digital infrastructure   With the advent of legislation such as DORA, the pressure to build operationally resilient businesses and IT estates that can support them has become undeniable. The complex nature of today’s IT infrastructures, which combine legacy technology with cloud-based and dynamic environments, pose additional challenges for financial services firms. They must put processes in place to ensure operational resilience and prove to the regulators that they are doing so. The pressure to maintain the running of business-critical services, meet service levels and ensure short resolution times has never been higher for IT departments and senior leadership. And yet, the complex and often siloed nature of today’s hybrid IT estates has made it harder to rise to the challenge. Therefore, a unified IT monitoring approach is necessary. The optimal outcome for today’s financial firms is an integrated and customisable monitoring solution that satisfies both the demanding business needs of financial firms and their regulatory requirements. It is essential to map processes end-to-end within the IT estate and have real-time monitoring in place for business-critical processes. Having a complete view of the entire IT infrastructure will allow IT managers, business owners, and business service owners, to identify and track and trace any problems that occur, allowing them to locate the original problem and find a swift resolution with minimal impact on their business-critical functions and systems. By mapping out the exact path of an issue, companies are better equipped to deal with current challenges, and plans can be made for the future to minimise the impact. A monitoring solution that provides accurate and timely reporting is also crucial in this context. It will let IT teams answer to internal stakeholders while allowing the business to prove to regulatory bodies that they are compliant with regulations. In this time of digital disruption where operational resilience has taken centre stage, financial services firms that do not have a complete overview of their IT estate, will not only see their customers walk away, but may also face the substantial financial and reputational damage that can come with non-compliance. Guy Warren is CEO of ITRS

After the distractions and downtime of the summer months, autumn offers a chance to reset and refocus. Moira Dunne offers her tips on how to prepare for the months ahead With the relaxing summer months behind us, it’s time to settle back into our work routines and some of us may be feeling a little overwhelmed by all the tasks that need to be completed. It doesn’t have to be so, however. Below are some tips that should help you to prepare and focus for the months ahead. Tip 1: Reset your mind First, it is important to reset your mind. Take stock of the tasks you need to do, review the year to date, and outline any changes you want to make  before proceeding into the busy months ahead. Ask yourself the following: Have you made progress with your 2022 goals and resolutions? What is going well that you should continue to do? What has stopped you from making progress? This is all linked to your mindset and energy levels. Do you feel motivated or exhausted? If it’s the latter, consider productive changes you can make to your work-life balance or routine. Don’t dwell on tasks you haven’t done—this can be demotivating. Instead, look on autumn as a clean slate.   Tip 2: Reset your goals Review your work goals. Have new ones emerged? Can irrelevant goals be removed, replaced or updated? To prioritise your goals, consider where you want to be at the end of Q4 and ask yourself whether your current goals will help you get there. Be realistic with your expectations. Over-burdening yourself with extra projects will only add to your stress, not take it away. Tip 3: Reset your plans If your goals are being updated, you must also ensure your plans are. Planning doesn’t have to be complicated—work out what needs to be done to complete your goals and the actions required to get you there. This will help you to break down your goals into achievable chunks. Once you have a list of actions, add target dates for each. Consider the end date for the overall project or goal and then work backwards. This helps you spread the work over each month. Tip 4: Reset your work routine Now you have a realistic and achievable plan, but how will you find time in your busy schedule? Take control of your time by implementing a weekly and daily planning routine. The best approach is to dedicate a time slot each week – say, Friday afternoons for 15 minutes – to look ahead at what is coming down the tracks. Identify up to three key items to get done the following week. This can include work on your goals, projects, or essential operational tasks. Then proactively block time in your diary to get this work done. Label these time slots with your target task or action. Protect this time if other requests arise, particularly if the new requests relate to less critical work. However, if you need to drop your planned work, that’s okay. But make sure you reschedule the time slot. Remember, your goal is to achieve it by the end of the week. Tip 5: Time blocking ‘Time blocking’ is a productivity technique that helps you progress with your planned work. The key to successful time blocking is daily routine planning. At the end of each day, review your progress, assess new objectives and make a quick plan for the next day. This sets you up for a productive start the following day and helps you switch off and refresh each evening. Further, develop a good morning routine to get into a productive mindset. Try doing the same activity every day, such as a ‘commute’ to work, which will help create a defined separation between work and home life (even when commuting from one room to the next if you’re working from home). Be productive in Q4 How great would it feel to finish the year on a high? Now is the time to reset your focus for a productive final quarter of the year. If you achieve your goal, celebrate. If you reach the end of Q4 without completing all your planned tasks and goals – that’s okay, too. You still have a good plan in place to take forward into 2023. Moira Dunne is Founder of beproductive.ie

It’s time for treasurers to take environmental, social and governance activities every bit as seriously as other business risks and opportunities. Brian Delahunty explains why. Key performance indicators (KPIs) are designed to drive an organisation towards its goals and strive to ‘do better’ each year, which in many ways is also the aim of environmental, social and governance (ESG) initiatives. While treasurers are used to setting and achieving KPIs, ranging from forecast accuracy to retrospective hedge effectiveness, ESG-specific KPIs (often called ‘sustainability performance targets’ or SPTs) are a new concept for many treasury professionals. In fact, according to the TMI and Barclays’ European Corporate Treasury Survey 2021, a mere 25 percent of European treasury functions currently have SPTs in place, and only 33 percent of the 225 respondents were planning to include ESG measures in their treasury objectives. Driving ESG KPIs Over the past 12 months, ESG has become a true boardroom imperative. Looking back to 2020, ESG was a theme lingering on the fringes of the board’s attention – but the COVID-19 pandemic catalysed an intense focus on communities and social challenges, as well as global supply chains and supplier relationships and values. As such, ESG is now front and centre for boards, and this trend is set to accelerate as we head into 2023. With this renewed focus on ESG and the treasury’s growing role as a strategic advisor to the board, treasury teams can no longer leave matters to the sustainability department and must lend support themselves. There are many ways in which they can achieve this support. In the early days of ESG, green bonds and loans were the only options open to treasurers, making ESG appropriate for only a handful of treasuries. Today, however, they have access to a growing set of ESG solutions at their fingertips, such as green trade and working capital solutions like green loans, supply chain finance, and green bill of exchange and promissory note discounting, as well as ESG-compliant investments. In addition, traditional green bonds and green revolving credit facilities remain popular and, of course, treasuries can exert influence through talent selection and choice of business partner. Setting the right targets Sustainability works best when there is a specific ESG policy for the treasury team, built in conjunction with the rest of the organisation. This enables treasury to play its part and be on the same page as the c-suite. Having a standardised approach across geographies and treasury centres is also critical. When developing ESG KPIs and targets, treasuries may wish to consider the: percentage of financing that is ESG-linked; percentage of short-term investments held in ESG-compliant vehicles; carbon footprint of the treasury team; percentage of paperless workflows (and meetings); percentage of women on the treasury team; and percentage of ethnic minorities on the treasury team. Treasurers must collaborate with internal and external partners to set the right goals that adhere to industry best practices and guidelines while also using rigorous and measurable targets to mitigate the risk of ‘greenwashing.’ Disclosures and sustainability reporting While non-financial reporting might appear outside the treasurer’s traditional remit, they can play a vital role in communicating sustainability-related information to stakeholders and the market. Learning about initiatives happening in the market can give treasurers an edge. Important frameworks, standards, and directives to be aware of include: The European Commission’s (EC) Non-Financial Reporting Directive; The EU Taxonomy and Sustainable Finance Disclosure Regulation; The Global Reporting Initiative (GRI); and The prototype climate-related financial disclosure standard from the CDP, Climate Disclosure Standards Board, GRI, International Integrated Reporting Framework and Sustainability Accounting Standards Board. With progress still to be made among standard-setters and regulators, it is worth having early conversations with corporate banking partners, vendors, and third-party sustainability experts about treasury’s proactive participation in sustainability reporting. Next steps It may seem as though treasury has a long to-do list regarding ESG. While there are areas that will require attention from treasury leaders, many of the solutions are relatively simple to implement, and the potential benefits are not to be scoffed at. Arguably, the most significant ESG risk is failing to understand how critical sustainability is to the future of business – and failing to build it into the heart of the treasury function. Companies may find themselves disadvantaged as buyers or suppliers if they no longer satisfy their counterparties’ ESG requirements. Likewise, support from banking partners, vendors, and consumers may fall away if ESG criteria are not met. It’s time for businesses, and treasurers, to start taking ESG as seriously as they do other business risks and opportunities. The potential downsides of not doing so can seriously impact people, profits, and the planet. Brian Delahunty is the Head of Corporate Banking in Ireland at Barclays

Standing out among your competitors can be tough, especially in the digital age. Mary Cloonan outlines how visible expertise can help professional services firms gain a competitive edge The world is becoming increasingly digital by the day, meaning a shift in the way firms and organisations are viewed by clients and competitors. In this fast-changing landscape, one of the most important steps a professional services firm can take is to build visible expertise. Knowledge and expertise—once something that was only gained through years of experience in a field—is now just a few clicks away, and with this comes the challenge for businesses to maintain their edge. To stay relevant in professional services, businesses need to focus on building visible expertise. But, what is visible expertise, and how can it be acquired in today’s digital world? Visible expertise explained Visible expertise is the combination of thought leadership and relationship marketing. It’s about being known as an expert in your field and having the relationships to back this up. Thought leadership is about sharing your knowledge and ideas to educate and inspire others. It’s about demonstrating that you are an authority on a particular topic and have something valuable to say. Relationship marketing is all about building solid and long-lasting relationships with your current and potential clients and creating a connection that goes beyond simply providing a product or service to become a connection that lasts. Combined, thought leadership and relationship marketing make up visible expertise. And when it comes to professional services, visible expertise is critical. Visual expertise and accountancy There are four reasons why visible expertise is so vital for accountants: Visible expertise is a way to differentiate yourself from your competition. Businesses are constantly vying for market share, and being known as an expert in your field sets you apart. When you share your ideas and knowledge, you demonstrate your expertise and confidence, making you more trustworthy in the eyes of your clients. Prioritising market development efforts and budgets in a specific segment of your profession allows you to maximise returns from minimum investment. Finally, it’s a way to stay ahead of the curve. By sharing your ideas and thoughts on a given topic, you are positioning yourself as an authority – someone who is up-to-date on the latest trends and changes, allowing you to stay one step ahead of competitors and become the go-to firm when clients need an expert. Building visual expertise Building visible expertise is critical in a competitive market. Here are five steps you can take in your professional services marketing journey. Claim a sector or industry segment Narrowing your focus to a specific segment is the first step in claiming visible expertise. You need to identify the area you want to be known for and then start sharing your ideas and thoughts on that topic. Building knowledge in a specific area takes time and effort, but to truly ace it, you must put in the work. Read industry publications, attend relevant conferences, network, and learn. Most importantly – write about it. Sharing your ideas online is one of the best ways to build visible expertise. Understand target audience segmentation Now that you’ve claimed your sector or industry segment, you need to understand your audience. Understanding their specific needs and how your solutions can help them overcome the challenges they face is essential. Ask yourself who needs your expertise, what their pain points are, and how you can provide the solution to their problem. Sharpen your expertise As an expert in your field, you are responsible for sharpening your skills. Educating yourself on the latest changes and trends in your industry, such as reporting standards or tax rules, is crucial. Demonstrate your growing knowledge through LinkedIn posts, trade magazine or newspaper articles, interviews or conference speeches. Build your profile You need to have a plan for how you are going to share your expertise and ideas and what platforms you are going to use to do it. Discover the platforms that will work best for you and your business. If you’re unsure where to start, look at where your target audience spends their time online and consider using those platforms to share your content. Execute the strategy Creating visible expertise takes time and effort, especially in the beginning. However, if you are consistent with your content and remain focused on your target audience, you will start to see results. It’s crucial to track your progress along the way. Keep an eye on your website traffic and social media engagement to see how people respond to your content. This will give you a good indication of what’s working and what isn’t, and you can adjust your strategy accordingly. Mary Cloonan is the Founder of Marketing Clever

Budget 2023 will be delivered against a challenging backdrop, so what steps can the Government take to maintain and enhance Ireland’s FDI appeal? Kevin McLoughin explains The surge in Ireland’s tax revenues came when they were most needed, giving the Government valuable fiscal room to help people and businesses deal with the cost-of-living crisis. The record €9 billion in revenue from corporation taxes does, however, raise some concerns about its sustainability in the future and the concentration risk involved, as a significant proportion of the revenue comes from a limited number of taxpayers. While Budget 2023 will undoubtedly focus on the cost of living and energy, it is critically important that Ireland’s highly competitive position as a location for foreign direct investment (FDI) is kept firmly front of mind. In a competitive global landscape, Ministers should seek ways to enhance Ireland’s attractiveness to FDI, so that we might retain and grow investment from multinational enterprises. Ireland’s competitive edge Ireland’s competitiveness as a place to do business will become even more critical as economies move into anticipated recessions here and in key export markets such as the UK, regardless of the impact of Brexit. While Irish organisations might have diversified their export markets in recent years, those changes will not protect them from a global recession where margins are likely to be squeezed to the limit. This highlights the critical need to ensure that Ireland offers a cost-competitive, highly innovative and supportive environment in which businesses can continue to compete successfully in international markets. What will the Government’s role be in relieving some of the supply chain pressures businesses face? There is certainly very little direct action Ministers can take on Budget Day. Still, the Government should continue its indirect support for businesses through its network of embassies, Enterprise Ireland, and other government bodies, all of which are working to open new trade routes to facilitate a broader range of procurement options. The supports and incentives offered by the Government to indigenous Irish entrepreneurs will be of key importance to Ireland’s future economic success. These individuals are the bedrock on which the next generation of globally successful Irish companies will be built. Spotlight to remain on R&D scheme From a budgetary perspective, we already have an attractive research and development (R&D) tax credit regime and a Knowledge Development Box designed to encourage research, development, and innovation. In this context, non-tax measures, such as the young talent pool possessing the technical skillset and experience, are becoming increasingly persuasive. That said, Ministers need to be conscious of the impact of the personal tax burden on an individual’s working location. In particular, there should be no changes in the Budget that might make the current Special Assignee Relief Programme scheme less attractive. International mobility remains critical to supporting investment decisions by international businesses, and the level of personal taxation can be a significant driver of the cost of such mobility. Finally, with agreement on sectoral carbon budgets reached in July, there has been speculation that Budget 2023 will include new reliefs and incentives for green investments aimed at accelerating Ireland’s net zero journey. In this area, however, there have not yet been any radical moves on the tax front to either penalise or incentivise activities or investments. We expect the existing policy position to be maintained in this Budget and that the Government will resist pressure to reduce the carbon tax regime against increasing energy costs. Kevin McLoughlin is Head of Tax at EY Ireland

Payroll is critical, yet its operations are often overlooked and neglected. Jessica Webbley-O'Gorman outlines four common obstacles faced by the payroll function and how to overcome them Payroll is essential for both organisations and employees. Despite this, payroll is often neglected and overlooked until a crisis occurs. Instead of treating payroll as though it's the poor cousin of strategic internal business functions, organisations should instead critically evaluate the payroll function to reap an abundance of benefits. Here are four common stumbling blocks most organisations trip over when it comes to payroll—and how best to navigate them. 1. Payroll is often neglected until there is a crisis Anecdotally, it takes eight months for an employee to regain confidence in their payroll after just one error. The time payroll teams require to verify, adjust and readjust an employee's pay is vast—without adding value to the organisation or individual. Paying attention to payroll when it's business as usual is essential in avoiding errors, rather than hyper-focusing on the area when there's a problem. 2. Unclear roles and responsibilities Payroll generates changes and improvements from within the organisation and will be able to implement them. But, it is just one part of the organisation: identifying what happens upstream and what flows into payroll is important. Organisations should critically examine the overall organisation in which payroll operates. Remove silos surrounding your payroll team and ask yourself: what are the wider organisation's processes, operations and goals that payroll could support or that impact on payroll's ability to deliver its core tasks? 3. Lack of intentional inclusion of stakeholders Payroll is experienced in different ways by different people. Whether it's a new employee, an employee on sick leave, a line manager struggling to understand a new expenses policy, a finance director who needs to close this quarter's reports, a payroll administrator or an outsourced payroll provider—all have different priorities, experiences, and levels of authority affecting the outcome they want. You need to consider as many different experiences as possible regarding payroll. These multifaceted perspectives can help plan for – and navigate – potential obstacles that could otherwise snowball. Unless such diversity of these moments and needs is considered and planned for, payroll will not be appropriately resourced or prepared to respond, and the experiences of key stakeholders will not be positive. 4. One size does not fit all Payroll must be an overall process and yet accommodate each individual employee. Employee numbers, benefits packages, legacy systems, HR reporting capabilities, organisation culture, and individual circumstances will all impact the complexity of payroll. There is no magical 'payroll button' that can accommodate everyone across the organisation, meaning that the payroll function must be nuanced, robust and flexible. In practical terms, this could mean including payroll in planning new HR systems or processes; linking in with HR on employee experience programmes and priorities; and taking resource or system concerns raised by your team seriously. How to elevate your payroll function for good The following actions can help elevate the payroll function so it is seen as a vital part of any organisation. Being an active and visible part of the broader organisation is critical for payroll Communicating what is going into payroll and what is not is critical. It is not good business, nor a good experience, for an organisation to fail to consider how payroll operates as part of the organisation's employment tax, employment law and revenue compliance profile. The solution is to map out your payroll processes, identify your stakeholders, and communicate those findings. Payroll process mapping opens the opportunity to identify, discuss and alter how things are happening or who is responsible for them Clarity around roles and responsibilities isn't just for the benefit of payroll. Providing a clear structure around the roles and responsibilities regarding payroll is a proactive risk management strategy within the organisation that will also outline how payroll adds value to the organisation and the payroll function itself. There is a tension between the universality of payroll (everyone needs to get paid) and bespoke requirements (everyone needs to get paid their pay) The most urgent or essential challenges facing an organisation or payroll team will vary from organisation to organisation. Pick an easy win or the biggest pain point and promote payroll's positive capability. Jessica Webbley-O'Gorman is Tax Director at PwC

Challenging your bias is uncomfortable and takes effort, but it needs to be done to foster a truly inclusive workplace culture. Andrea Dermody explains how. Our brains are trained to make snap decisions that are not necessarily based on either facts or judgment. The key here, however, is what happens next. Do you act on your initial judgement, or do you take a step back, acknowledge the facts, and change your behaviour accordingly? This is a central issue around different types of bias. When we make a judgement and don't change our approach, no matter the evidence to the contrary, we're heading down a dangerous road towards unconscious bias. And, when we first become aware of unconscious bias, trying to do anything about it will feel uncomfortable.  Why uncomfortable matters When we learn a new skill, such as riding a bike, we're delighted to be uncomfortable. But in the professional arena, and especially for those in senior roles who are used to being regarded as well-informed, recognising that there are areas where we are ignorant is an uncomfortable place. However, to work towards eradicating biases, it is essential to be aware of these knowledge gaps and understand how important it is to start learning. By listening to what people with different experiences have to say, you will build this skill into a habit and eventually find yourself less uncomfortable and more informed. Be BRAVE to counteract bias One way to eradicate biases is to deploy the 'BRAVE' technique. Each letter of BRAVE stands for two actionable steps an organisation can take. Build relationships outside your in-group Hearing the story of someone else's different lived experiences can help promote empathy. Be consciously inclusive Ensure you build inclusion into every touchpoint and interaction you have with people by asking yourself what is missing: do we have differences represented? Do we hear different perspectives and voices? Recognise bias in yourself and others Look for people who will challenge you—and do the same for them. Request feedback from a broad group You have to leave your echo chamber to see the full picture of a situation. Consider 360 feedback requests from people outside your comfort zone, such as peers and direct reports. Advance all talent Don't just choose to mentor and sponsor people who have the same experiences as you. It is much more valuable to mentor and sponsor people who might have a different experience from your own to broaden your view and theirs. Accountability to drive progress Consider how you will hold yourself accountable for any changes you make to your way of thinking and question how your organisation holds people responsible for change. Without accountability, cultural or behavioural change is impossible. Being vocal the moment you see inequity If you don't challenge where you see inequity, you're telling everybody else in the group that you're okay with what's been said. Speak up. Add another viewpoint to your decision making Are you only making decisions based on input from a tiny group of people? Receive input from a variety of different types of people. Empower everyone to contribute and act Help people understand that inclusive culture is about how we treat each other, from the CEO down. Effort by everyone, every day Feeling and doing something that makes you uncomfortable, or doing something that feels initially counterintuitive, can feel like it's going against your gut. But, we must make ourselves uncomfortable to drive inclusivity within our organisations. Andrea Dermody is the Founder of Dermody Inclusive Organisations

Energy costs are rising, and people are looking for help from their employers. What supports can UK employers offer, and what are the tax implications? Caroline Harwood explains Very few people in the UK will not be impacted by the rocketing price of energy costs. So, understandably, employers may be faced with calls for help and will want to support their employees where they can. What can employers do, and what are the associated tax and national insurance implications? Additional pay or bonuses As with any other cash payments arising from employment, Pay As You Earn/National Insurance Contribution (PAYE/NIC) will be due. There are no reliefs or easements available despite the purpose of the payment. Reimbursing the employee for an energy bill Employers must be aware that reimbursing an employee for a specific energy bill will be treated as earnings for tax and NIC purposes at the time of payment. This means that the sum reimbursed will need to be subject to PAYE, and both the employee and employer will pay NIC at that time.  However, if the employee works from home, the potential to treat some of the energy costs as a business expense and be exempt from tax/NIC exists. Paying the energy provider It may be possible for an employer to arrange to pay the energy provider directly on behalf of the employee. This would be treated as a benefit-in-kind (BIK), and the tax treatment is the same as reimbursement. An energy provider may also be able to issue a bill in the name of the employer, but the underlying supply contract will remain between the employee (i.e. the energy customer) and the energy provider. This form of payment will also be treated as earnings for NIC purposes for both the employee and employer at the time of payment. If an energy provider is prepared to enter into an energy supply contract with an employer to supply an employee’s property directly, the same tax treatment will arise, but no employee NIC would be due. It is unlikely, however, that energy providers will wish to do this for regulatory reasons. Using salary sacrifice Salary sacrifice is a very common mechanism for delivering BIKs. However, if this is used to help pay an employee’s energy costs on a pound-for-pound basis, the tax treatment is the same as for BIKs.  The NIC treatment would repeat the position for paying the energy provider directly. In this instance, salary sacrifice is probably not worthwhile for employers to consider. Despite this, a longer-term option utilising salary sacrifice to deliver an electric vehicle (EV) car for an employee can be cost-effective, with the added benefit of helping with your organisation’s environmental, social and governance (ESG) agenda. Making a loan Perhaps the most tax/NIC effective way to assist employees would be for the employer to make an interest-free loan. If the loan is capped at less than £10,000, it has no tax implications and is not reportable as a BIK. It also has no NIC implications – this cap includes any existing loans the employee may have from their employer. Higher-value loans are a reportable benefit. An employer can agree to repayment over whatever terms it is comfortable with or write the loan (or part of it) off later. If a write-off occurs, the sum involved will be treated as a BIK and subject to NIC. However, it is essential to note that the loan terms must not include any intention to write it off at the outset, as HMRC will treat a loan as earnings. Caroline Harwood is Partner of National Head of Employment Tax at BDO UK

The right mindset, along with a robust support network, can do much to help women in their careers. Dawn Leane explains the four factors that have contributed to the career accomplishments of successful women in business In my last article, I shared details of a research study carried out by Fiona Dent and Viki Holton for their book, Women in Business: Navigating Career Success, in which successful women revealed the factors that either encouraged or inhibited their careers. Now, we need to look at the factors the participants in that study identified as crucial to promoting and supporting their achievements. Personal work attitude Resilience is essential for women as they navigate hidden challenges and barriers their male counterparts do not face. This includes a strong work ethic and the ability to manage adversity. In her book, Mindset: The New Psychology of Success, psychologist Carol Dweck contends that, from early childhood, we develop one of two mindsets: a fixed mindset or a growth mindset. People with a growth mindset believe that, with effort, we can develop our skills, abilities and talents. They also focus on learning from positive and negative experiences and persevere when facing adversity. In contrast, those with a fixed mindset believe success is based on innate ability. By understanding, challenging and adjusting our mindset, we can change our career trajectory, relationships and happiness. Supportive family and friends In her book Couples That Work, Jennifer Petriglieri discusses how dual career couples face challenges that are usually framed as a zero-sum game, where one partner succeeds at the expense of the other. Couples who thrive develop what Petrigilieri terms a ‘secure base’, meaning both partners are supportive and encourage each other to take risks. The support role is interchangeable. Sometimes, one person is the support, and at other times they are the one being supported. Many participants in Dent and Holton’s study valued the support of their partner, family and friends in achieving success. Having a ‘secure base’ is one of the ways in which women can gain support needed to thrive. Organisational support The support of managers and colleagues is also crucial to women developing their careers. In response to the question “During your career, please indicate the people who have supported you in achieving your goals?”,  87.6 percent of Dent and Holton’s study participants identified their bosses, and 79.9 percent identified colleagues. Almost all participants highlighted the importance of their manager offering encouragement, providing challenging opportunities and the psychological safety of being allowed to experiment and fail. The manager is also crucial to one of the most pivotal points in a woman’s career: maternity leave. Research carried out by Dublin City University, Re-Engaging Talent Post- Maternity Leave: Enablers and Barriers to Positive Reintegration, identified that: “one of the critical factors in determining how women experienced the transition back into work after maternity leave was the perspective management had on maternity leave and this transition in a woman’s career. We saw many positive examples where line managers and/or the organisation viewed their maternity leave as a brief interlude in the individual’s long-term career. In these organisations, the females often reported a positive transition back after leave”. Developmental opportunities, such as a willingness to study for more qualifications and continuing personal and professional development, were also identified as essential factors, as were moving regularly and gaining international experience. Self-awareness A strong awareness of individual skills, career goals and taking advantage of opportunities were also associated with career success. Being unashamedly intentional and strategic about their ambition can feel uncomfortable for women because of their experience and societal conditioning. Having a sponsor, coach or mentor at key junctures allows women to access experience, further develop self-confidence and judgement and remain on track when navigating barriers to success. Dawn Leane is Founder of Leane Leaders and Leane Empower. In October, she will deliver a workshop for aspiring female leaders, Women in Leadership, Navigating the Environment.