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Jillian O’Sullivan sheds light on the new Irish law mandating identity verification for company directors and its potential implications for businesses The Companies (Corporate Enforcement Authority) Act 2021 contains a provision requiring the directors of Irish companies to provide their Personal Public Service (PPS) number on certain documents submitted to the Companies Registration Office (CRO) to allow for verification of a director’s identity.  The CRO has announced that this requirement will be effective from 23 April 2023. Application All directors of Irish companies will be required to provide their PPS number to the CRO when filing the following forms:  Form A1 – Incorporation application; Form B1 – Annual return; Form B10 – Change of company officers or their particulars; and Form B69 – Notice of cessation of company officer where a company has failed to file the notice. PPS number verification The CRO will verify the director’s first name, surname, date of birth and PPS number submitted electronically with the data held by the Department of Social Protection (DSP). In order for there to be a match between the two sets of data, the first name and surname submitted to the CRO must exactly match the names associated with that PPS number in the DSP database. The CRO has confirmed that it reserves the right to reject any submission where there are discrepancies between the information submitted and the information held by the DSP. PPS retention When the PPS number filed with the CRO has been validated, it will be retained securely in an irreversible hashed/encrypted format and stored securely. PPS numbers will not be accessible by any employee of the CRO or any other party, and they will never be shared with any third party. The CRO will then match the hashed/encrypted version of the PPS numbers to future filings, avoiding duplication of director records. Directors with no PPS number If a director does not have an Irish PPS number, they must apply for a Verified Identity Number (VIN) by completing a Form VIF (Declaration as to Verification of Identity) and filing it with the CRO. The Form VIF must state the director’s name, date of birth, nationality, and address, and it must be sworn in the presence of a notary in the director’s home country. Digital or electronic signatures cannot be accepted on Form VIF. Once the Form VIF has been processed successfully, the CRO will issue a VIN to the director and the presenter of the VIF. This must be used for all future CRO filings for any company to which that director is appointed. If a director does not have a PPS number but has previously been issued a Register of Beneficial Ownership (RBO) number for filings made with the Central Registrar of Beneficial Owners, then the director can use their RBO number as their VIN for CRO filings.   The VIF will not be publicly available on the CRO searching system. Non-compliance If any person fails to comply with this new requirement, they shall be guilty of a category four offence resulting in a fine of €5,000. It will also mean a company cannot complete their filings and could suffer late filing penalties and possible loss of audit exemption.  Next steps If they have not already done so, now is the time for companies to start collating their directors’ PPS numbers or RBO numbers and establish whether any of their directors will need to apply for a VIN. To avoid any unnecessary delays with filings, directors and their company secretarial providers should review information about them held by the CRO (e.g. first name and surname) and identify any inconsistencies between such information and the data stored by the DSP. Jillian O’Sullivan is Partner of Corporate Compliance at Grant Thornton

Accountants are discovering new ways to use AI for marketing purposes. Maryrose Lyons explains how they can leverage generative AI to create business content As discussed in my last article, many accountants have already taken a special interest in using generative AI, such as ChatGPT, to create opportunities for marketing growth. If you’re not already leveraging this technology within your organisation, here are six ways accountants can use this technology in their marketing efforts. 1. Market research and strategy ChatGPT can be used to identify emerging market segments and identify opportunities, potentially helping accountants to tailor their services and marketing strategies accordingly.  It can assist in developing comprehensive marketing strategies, ensuring that all marketing efforts are focused and effective. 2. Content creation Generative AI can be used to support content production, such as blog posts, articles and social media updates. These can be done in minutes, allowing an organisation to focus on clients. 3. Social media ChatGPT can be used for strategies, engagement and content production at scale for social media sites such as LinkedIn and Twitter, increasing engagement with potential clients and connections. 4. Email Email marketing can be elevated through more personalised email campaigns and client updates that do a better job of helping busy accountants stay connected with existing clients and generate new leads. 5. Marketing assets Brochures, flyers and client presentations can be made more visually engaging by using apps like Midjourney to create high-quality images based on text commands. 6. Keyword research Identifying relevant keywords and optimising website content for search engines is an important part of marketing. Accountants can leverage generative AI apps to help create content that search engines will pick up. Generative AI is an innovative tool that could help you to streamline mundane tasks while freeing up resources for more creative and complex work. Maryrose Lyons is the founder of Brightspark. Brightspark is offering a Digital Marketing with ChatGPT course on 27 April 2023

A recent survey suggests that Irish CFOs are placing less importance on ESG considerations than they did a year ago, despite growing stakeholder interest, explains Derarca Dennis Ireland’s financial leaders are optimistic about the future despite current challenges, identifying investment in talent as one of their top priorities, the EY Ireland CFO Survey 2023 has found. Interest in environmental, social and governance (ESG) issues has, however, faded over the past year and this is a cause for concern. Just six percent of the 151 finance leaders surveyed by EY Ireland cited increasing the sophistication of non-financial reporting as one of their top strategic priorities for the five years ahead, down from 15 percent in the 2022 survey. Only 10 percent saw opportunities in sustainability and decarbonisation as a priority for driving growth in the year ahead. It is essential to view these findings in the context of the timing of both surveys, however. The 2022 survey took place before the Russian invasion of Ukraine at a time when the world was emerging from COVID-19. There was a decidedly optimistic view of economic prospects and a growing focus on the need to tackle the climate emergency. Conditions in early 2023 could hardly be more different. Spiralling energy costs, inflation at levels not seen for decades, rising interest rates and continuing geopolitical volatility have combined to focus business minds on more immediate survival and growth concerns. ESG viewed as compliance The overall results of this year's EY Ireland CFO Survey suggests that ESG is still regarded as a compliance and regulatory issue rather than as a source of commercial opportunity. Forty-three percent of our respondents pointed to sustainability regulatory compliance as a key focus for the next two years, while just two percent identified non-financial and ESG reporting as a priority for the same period. What is concerning is that organisations not covered by regulations (current or imminent) could face difficulties winning new business or maintaining relationships with existing customers. Organisations that are covered by the regulations, and that have set decarbonisation targets, increasingly require their supply chains to meet the same standards, with potentially severe consequences for failing to prepare adequately, so collaboration across the supply chain is essential. Financial and training implications Organisations raising finance already have to answer questions about sustainability performance and social impact from banks, private equity houses and other potential investors. It is, therefore, imperative to make ESG/non-financial reporting an integral part of their core strategy. There was also a degree of discordance in the findings. When talking about the evolving role of the CFO, 54 percent of respondents claimed their role now includes a greater focus on ESG and non-financial reporting, and 60 percent described their non-financial/ESG performance monitoring and reporting capability as basic or not mature. Despite this, attaining non-financial/ESG reporting skills was identified as a priority for the next five years by just 15 percent of the financial leaders surveyed. Lack of leadership buy-in A lack of endorsement from senior leadership and a paucity of expertise and experience within the finance team were cited as key barriers to more effective ESG reporting at an organisational level. Some 30 percent of the finance leaders surveyed said it was not considered a priority among leadership, which may lead to unaddressed ESG risks in the future. While the current macroeconomic environment and business climate can justify some diversion of attention away from the ESG agenda, the fact remains that it cannot be divorced from the broader needs of the business. Indeed, ignoring ESG will present significant risks in an environment where a business’s ESG credentials and sustainability performance will increasingly become key competitive differentiators. Future-focused CFOs need to be aware of the importance of the ESG ecosystem and mindful of the environment in which they operate, which not only includes Ireland but also the European Union. They must ramp up resource allocation to enable their finance teams to meet rapidly growing ESG and non-financial reporting requirements. Failure to take these steps could see businesses falling behind those competitors that are addressing the ESG agenda today. You can read the full report at EY.ie. Derarca Dennis is Assurance Partner at EY Ireland

Nóra Cashe offers expert advice on handling a pay rise request from an employee while maintaining a positive and productive working relationship The cost-of-living crisis has put severe pressure on business owners from various sources. In addition to the increasing cost of energy, loans and raw materials, employees also seek higher salaries to help pay their bills. Here are six steps to managing this sensitive topic. 1. Link pay rises to performance When you first receive a pay rise request, the best thing to do is to ask for time. Not all employees make the same contribution to the business, so it is reasonable to say you need time to review the position. If the employee makes a verbal request, ask them to submit a written request stating why they deserve a pay rise. Once you have received the request in the format you require, advise the employee that you will review their performance with a line manager and, if appropriate, colleagues and clients. Give the employee a timeframe for when they can expect to receive your decision. Your appraisal will examine factors such as productivity, quality of work, customer satisfaction, teamwork and adherence to company values. 2. Carry out a salary review Once you’re satisfied that the employee’s performance is to the standard required, examine the market pay rate for the employee’s position. Recruitment companies generally publish salary guides, which can be helpful in this regard. Consider your budget, projected revenue growth and profitability. 3. Be prepared to negotiate You may need to enter negotiations with the employee on the pay rise amount. Your negotiating position will be influenced by factors such as the employee’s performance and the market rate salary for their role. Once you have considered the position, you may want to make a counteroffer on salary. This could be a performance-based bonus or a flexible working arrangement depending on the employee’s preference. 4. Consider alternatives to a pay rise Alternative benefits can help you hold on to a valuable employee even if your budget doesn’t allow you to grant a pay rise. Depending on the employee’s priorities, flexible hours, remote working or more generous annual leave could satisfy the employee even if their pay rise was declined. 5. Decide who communicates the decision The organisation must decide who informs the employee of your decision. In bigger businesses, it is likely that the HR department will handle the process, but in an SME, the employee’s line manager will have to communicate the decision. If you must decline a pay rise request from a valued employee because you do not have the budget to grant it, schedule a date in the future to review the situation. Whatever the decision, ensure the employee receives a thorough explanation outlining the organisation’s reasoning. This demonstrates that the organisation takes pay rise requests seriously. 6. Maintain a positive working relationship Organisations must balance employee expectations with the company’s financial constraints and market competitiveness. However, a transparent and fair process will help employees understand the reasoning behind the decision and maintain a positive working relationship. Nóra Cashe is the Litigation and Compliance Manager at Peninsula

Throughout the winter, Ireland’s economy has remained strong across all key macroeconomic indicators. However, a discourse is emerging that economic bottlenecks may hamper growth and competitiveness. Dr Daragh McGreal looks at what this will mean for the Irish economy Last year, despite challenges facing the global economy, Ireland’s economy was the fastest growing in Europe, with GDP growth of 12.2 percent and Modified Domestic Demand (MDD), used to measure the domestic economy, rising by 8.2 percent. The strong end to 2022 was driven by higher levels of investment by multinationals in intellectual property, continued growth in exports, higher private consumption (despite downbeat consumer sentiment) and a predominantly mild winter. Inflation and global uncertainty Despite these positives, there are several uncertainties, such as a mixed global outlook, tighter European Central Bank (ECB) monetary policy, higher levels of inflation, and service/infrastructure demand challenges. However, the government benefited from the exceptional level of tax receipts in 2022 that facilitated a budgetary surplus, allowing it to invest significantly in social transfers to cushion households against more severe impacts on their disposable incomes. Inflation since the start of 2023 has been somewhat more persistent than anticipated, standing at 8.1 percent in February, up from 7.5 percent in January. While there has been a fall in the cost of energy, inflation in other sectors remains high. As 2023 evolves, we expect inflation to fall potentially to 5 percent due to decreasing energy prices. Yet, while inflation may fall, the expected further monetary policy tightening from the ECB would cause issues for homeowners in Ireland, who will see mortgage and loan repayments increase and may drag on overall growth. How will the tech sector slowdown impact Ireland? Ireland relies on the tech sector for exports, jobs and tax revenue. Luckily, the negative impacts of the recent slowdown have been modest, with Ireland’s tech sector remaining relatively resilient. Total layoffs to date in Ireland have accounted for around 1 percent of the sector’s workforce, compared with approximately 1.5 to 2 percent globally. There’s also a growing fear that the Irish Exchequer is over-reliant on tax from multinationals. To create a buffer against this risk, the government has transferred billions from its October budgetary surplus to a ‘rainy day’ fund. While the government hopes that any feared risks never materialise, its overall approach has been prudent. Cautious optimism Ireland’s outlook remains positive in 2023 and beyond, with inflation expected to reduce. However, high prices and rising interest rates are still expected to drag on growth. There’s a sense of relief among policymakers that many of the pre-winter economic downside risks, such as supply chain disruption, did not materialise. Against the global backdrop of multiple negative risks, it would seem appropriate that the Irish approach is to prepare for a rainy day. Dr Daragh McGreal is Director and Head of Strategic Economics at KPMG

Roisin Magill explores the five most common issues encountered by the PSRA in Accountant's Reports so their clients can avoid delays and additional costs The Property Services Regulatory Authority (PSRA) plays a crucial role in regulating and overseeing the property services industry in Ireland. One of the PSRA's key responsibilities is to ensure that property service providers comply with the law, including the requirement to submit an annual Accountant’s Report for each company/business Licence Renewal Application. However, each year, the PSRA receives incomplete Accountant’s Reports, which impact the efficiency of the renewal process (both for your client and the PSRA) and require additional engagement with the licensee or their representative. To highlight the issues in incomplete Accountant’s Reports, the PSRA has compiled the following guidance. Include all addresses Section 1.2 of the Accountant’s Report requires the inclusion of all addresses at which the business is carried out. Frequently these details are omitted. Insert signature in all required places The accountant’s signature must be inserted at various points in the Accountant’s Report, namely in Section 4.2 and Appendices 1, 2, 3A, 3B, 4 and 5. A physical signature or a verified digital signature such as DocuSign is acceptable. Insert ‘Nil’ where applicable In Appendices 1 and 2 of the Accountant’s Report, where no matters of concern have been identified by the accountant, a ‘Nil’ response must be inserted in the appropriate sections. Complete all rows Appendix 3A (Client Account Balancing Statement) requires all rows to be completed fully and correctly. Each row requires a figure or, where there is no applicable figure, ‘Nil’ should be inserted in the response box. While the Client Account Balancing Statement is prepared by the licensee, the accountant should ensure that all figures in the statement are inserted correctly to arrive at the final balancing figure indicating whether there is a surplus or a deficit on the client account. Where the Accountant’s Report indicates that the client account balances, a ‘Nil’ response should be inserted to indicate that there is neither a surplus nor a deficit. Include full title In Appendix 4 (Name on Account) the full title of the client account should be included, confirming that the word ‘Client’ is in the title. Adhering to the above points when preparing your client’s Accountant’s Report for inclusion with your client’s Licence Renewal Application will ensure that your client’s application is processed in a timely manner without the requirement to submit an amended Report to the Authority, saving time and money. Roisin Magill is Assistant Principal Officer of Licensing at the Property Services Regulatory Authority