Russia’s invasion of Ukraine has created an energy crisis across the European Union. Now is the time for European governments to radically restructure their energy sectors, writes Judy Dempsey As autumn kicks in, there’s hardly a household or company in Europe that has not been affected by the huge hikes in energy prices. Now that Russia has stopped supplying gas to Germany via the Nord Stream gas pipelines, governments are rushing to buy expensive gas, attempting to fill their storage facilities ahead of the winter. The last thing they want are price-hike demonstrations and to lose support for Ukraine’s determination to defeat the Russian military. There are several lessons in these price hikes and shortages that must be learned by all EU member states, and the first is the price of dependency. Successive German governments and companies believed gas contracts with Russia were reliable and stable, but how many times did experts warn that Russia could one day use energy exports as a geopolitical instrument? By cutting off energy supplies, Russian President Vladimir Putin is punishing the European opposition to Russia’s invasion of Ukraine in the form of sanctions and curtailed weapon supplies to Kyiv. Putin’s goal hasn’t changed. He wants to divide the EU and give succour to populist movements that are often pro-Russian, anti-NATO and anti-American. That is why the West must stay the course over Ukraine. A Russian victory in Ukraine is a defeat for European security and stability. The second lesson here is how the European Commission, despite its best intentions, did not liberalise energy markets enough to ensure that energy could, like the single market, flow across the EU. The third concerns the failure to link up electricity and gas grids, from north to south—and to link the Baltic states to their western neighbours just as Russian gas transmissions had for decades been designed to flow westwards to Europe via Germany. Fourth is the issue of solidarity, always a thorny issue if you recall the absence of solidarity during the 2015 refugee crisis. With regards to the energy crisis, EU member states have been trying to find their own national responses. Yet, Germany—whose household energy prices are sky-rocketing—actually sells gas to France. Why? Because France, which uses nuclear energy as one of its main energy sources, has neglected the maintenance of its plants. Meanwhile, Denmark has a surplus of energy, but the grids to export this energy are not compatible with other EU member states. The fifth lesson is that this energy crisis should be the catalyst for pushing forward renewable energy. Yet, in a bid to get through this winter, Germany’s Social Democrat-Green-Free coalition is re-opening coal faces. While the Greens support this very ‘un-Green’ development, the party is divided over whether the remaining nuclear power stations former Chancellor Angela Merkel vowed to close by this year should be kept open. In short, Europe’s backing for reducing carbon emissions will be a challenge. In June 2021, the EU adopted a European Climate Law aimed at reaching net zero greenhouse gas emissions (GHG) across the bloc by 2050, with an intermediate target of 55 percent by 2040. This commitment will be tested unless there is massive up-front investment and political commitment to forge ahead with making renewable energy the priority. If not, Europe will be unable to break out of the dependency trap, unable to cope with another energy crisis, and unable to take another big step towards integration and embracing climate by connecting the different energy sectors. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

Coined in the seventies, the term ‘the glass ceiling’ has become a mainstay of discourse on gender equality in the boardroom, but over 40 years on, have we even come close to breaking it? Liz Riley reports It was during her speech at the 1978 Women’s Exposition in New York City that Marilyn Loden, the American feminist author, and workplace diversity advocate, coined the phrase ‘the glass ceiling’.  Forty-four years on, the term is still relevant—outliving Loden, who died in early August 2022. “I thought I would be finished with this by the end of my lifetime, but I won’t be,” Loden said in an interview with The Washington Post in March 2018.  “I’m hoping, if it outlives me, it will [become] an antiquated phrase. People will say, ‘There was a time when there was a glass ceiling’.” So, what is the glass ceiling—and how relevant is it to the workplace of today? Defining the glass ceiling The ‘glass ceiling’ is a metaphor describing the barrier preventing women from rising beyond a certain level in their profession. They have a clear view of what is beyond their reach, but they can’t break through to the other side. “There are two aspects to the glass ceiling,” explains Louise Molloy, Director of Luminosity Consulting, and an executive and team coach specialising in leadership development. “Well recognised are the limits organisations, culture, society, and behavioural norms, put on women.  “It is now also recognised that there are limits that we, as women in the workplace, might inadvertently put on ourselves. We do this through the options we advocate for, how we position ourselves, and the career decisions we make. To really break the ceiling, we need to work on both.” With gender pay gap reporting coming into effect this year, you might think that the end to the glass ceiling is surely near. According to a recent report by the European Commission, however, the number of women in Ireland holding senior management positions stood at just 28.8 percent in 2020, up from 15.3 percent five years prior. Ireland has made “excellent progress” on gender equality, the report states, but not everyone agrees. “While progress has been made in Ireland, women here are still substantially underrepresented in senior roles and decision-making spaces,” says Emma DeSouza, Women’s Leadership Coordinator with the National Women’s Council of Ireland.  “According to the latest CSO Gender Balance in Business Survey, in 2021, only 22 percent of the members of Boards of Directors in Ireland were female, one in eight CEOs in large enterprises in Ireland were women, and men accounted for 86 percent of Board Chairpersons.” While Chartered Accountants Ireland (the Institute) currently has 42.6 percent female membership overall, the 24-44 age group has an average 51 percent female membership, showing clear progress among the younger generations of Chartered Accountants.  Of the 1,686 people who have listed their job descriptions and identify as ‘senior executive’, however, just 287 of women. “I think we have made progress, but progress is not necessarily good enough”, says Sinead Donovan, Chair of Grant Thornton, and Deputy President of Chartered Accountants Ireland, “The end destination is to break through the glass ceiling. It is distressing that we are not there yet. Every year we celebrate that we are getting closer to breaking it. Sometimes, I wonder if that is a helpful narrative or not. “At the end of the day, if the intake to our profession is more than 50 percent female—and has been more than 50 percent for several years—and the population is more than 50 percent female, well, then we shouldn’t be celebrating anything until we are at that 50 percent mark.” Progress in the profession Eileen Woodworth became the first woman to be admitted to the Institute in 1925, but progress in the years that followed was slow. Professor Patricia Barker, Lecturer of Business Ethics at Dublin City University, was the 20th woman admitted to the Institute—48 years after Woodworth.  The issues preventing women from entering the profession didn’t stop at admittance. “Most people couldn’t conceive of a woman being a Chartered Accountant,” says Barker. “I was regularly addressed as a man with the name, ‘Mr Patrick McCann’. There were no women’s bathrooms for members in the Institute at Fitzwilliam Place. I had to use the librarian’s loo. Miss Jenkins was not pleased.” When she “pitched up to conduct the audit”, clients assumed she was the comptometer operator, Barker recalls. “There have only been two women presidents of Chartered Accountants Ireland since its inception, Margaret Downes in 1983 and Shauna Greely in 2017—a wide 34-year gap.”  This gap is closing, however. Sinead Donovan will take the reins as the Institute’s President in 2023. “It is an improvement, but one from a disgraceful base,” says Donovan. “It is shocking that it has taken this long.  “However, I think we are in a good place now for the future. It’s key to look at the movement [the Institute has] made on the composition of Council, which is currently sitting at a 47/53 percent split. We should maintain those numbers and aim for at least a 40/60 percent split for Council officers going forward.” Former Institute President Shauna Greely, who is currently Chair of the Institute’s Diversity and Inclusion Committee, also feels positive about the future. “Lots has been achieved in the past 50 years with gender representation in the profession,” says Greely.  “We have gone from 20 female members 50 years ago to 13,000 today. It is hugely important to have female role models, and we have many. Female graduates are encouraged to become Chartered Accountants, and female members can aspire to what others have achieved before them.” Diversity and inclusion It is now common for organisations to have initiatives and strategies specifically aimed at diversifying the employee pool. Molloy thinks this is helping women to find equity in the workplace. “Industry-level initiatives such as the 30% Club and Women in Finance and Tech are great for spotlighting the issue at a macro level,” Molloy says. At a company level, employee resource groups such as Meta’s ‘Women@’ initiative also help to create a space for women to share their experiences and build alliances, Molloy adds. “Through specialist sessions on topics such as how to communicate impactfully about your work and ambitions and how to network strategically, women learn to empower themselves,” she says.  “Many of the groups I work with have men as well, both as champions of diversity and attendees. These initiatives tend to be hugely successful as they are self-empowering and drive change from within.” Like Molloy, Donovan feels that support from both women and men is needed in any effort to help women get ahead. “We need to call it out. It cannot be down to women to ask about female representation on committees,” she says.  “It upsets and annoys me, and I know it annoys the lads when I’m the one who has to say it, when we all know it shouldn’t have to be me. The whole board should think about the diversity of the organisation.” Ultimately, Donovan believes that ‘Gen Z’ (the next generation of professionals, born between 1997 and 2012) could be the ones to pave the way for true workplace equality.  “I think they will flip a switch, but, whether it’s a switch for gender equality, I don’t know. I think equality and diversity will be a by-product of their way of working. Because of Gen Z, working will become more virtual, less about relationships and more about deliverables,” she says. “They are just not into developing relationships in the way that we were. That should mean the output will be more diverse, but I don’t think that’s the driving force. They’ll ask if it makes their work-life balance better or gives them space to do what they want to do. That will be their driving force rather than ticking diversity boxes.” Barker agrees, saying it will be interesting to see “if women retain the foothold they have achieved” as we move into new models of working, incorporating working remotely and a potential drop in employment opportunities “as inflation rises”. Breaking the glass ceiling As for actually breaking the glass ceiling, Donovan doesn’t hold out much hope. “I don’t think we will ever, as a country and a culture, waiver from the fact that women ‘need’ to stay at home to rear children or take time out from their careers to have children,” she says.  “Whilst that is there, I think it will always be a barrier to equity. I think if we get to 40/60 at the top levels of the profession, that might be where we cap out. We will never have enough momentum to enable the progression needed to achieve parity. Does a break from work impact a woman’s career? It does. It absolutely does. This will only be corrected when it becomes accepted and ‘the norm’ for men to take a gap to share in the family responsibilities.” Barker is, however, a little more optimistic: “It is not so much a question of breaking through the glass ceiling—it’s more a question of women defining the landscape of the ceiling once they get up there”.

Prosecutions against charities that do not file their annual report with the Charities Regulator will be ‘the next step’ in the regulation of the sector, writes Colin Kerr The Charities Regulator is calling on non-profit organisations to prioritise compliance and transparency to support public trust at a time of rising regulation in the sector. Published in late July, the Charities Regulator 2021 Annual Report revealed that just 64 percent of registered charities in Ireland had filed their annual reports on time. Commenting on the finding, Helen Martin, Chief Executive of the Charities Regulator, said there had been a decline in the number of charities filing their annual reports within the required timeframe, a trend she called ‘disappointing.’ “Our registration and compliance units are assessing why some charities are failing to meet this statutory requirement,” Martin said. Providing an overview of a charity’s finances and activities on the Public Register of Charities, these annual reports are an “important means” for registered charities to provide basic information to the public, Martin added. “The question for charities is whether they can afford not to comply with the requirement to file annual reports. Funding is the number one concern for charities we surveyed last year, and as inflation brings an increased cost of living, it will remain so,” she said. “There is a strong link between greater transparency and accountability and public trust in the sector, making their annual report to the Charities Regulator an important means for registered charities to provide basic information to the public on their finances and activities in the previous year.” Under the Charities Act 2009, every charity must submit its annual report to the Charities Regulator ten months after its financial year ends. “In 2021, we noticed a drop-off in the rate of compliance with this requirement,” said Tom Mulholland, Director of Compliance and Enforcement with the Charities Regulator. “The Charities Regulator came into existence in 2014 and, every year prior to 2021, the rate of compliance was increasing year-on-year. “We are concerned with the reduction of the number of charities filing their annual reports on time, as this is a legal requirement.” Mulholland pointed out that filing an annual report to the Charities Regulator was not an onerous process. “The report is filed online, and it is a straightforward form, which requires basic figures including income, expenditure, assets, and liabilities. It is an opportunity for charities to give details of the work they carry out,” he said. “There is a free text section on the form, which allows the charity to detail their activities, which means that if someone is looking up a charity on the Register of Charities website (charitiesregulator.ie), they can see from the most recent annual report what the charity itself is saying about its activities.” Those charities that file their annual reports to the regulator were also demonstrating to the public that they were compliant with their obligations. Mulholland said: “This should be a comfort to someone who decides to donate to a charity, and it also allows the donor to get information about the charity in terms of its income, expenditure and activities.” While the Charities Regulator had always been ‘proportionate’ in its interaction with charities, Mulholland said that, in the interest of fairness and due diligence, it had to consider those charities which were making the effort to be compliant when dealing with non-compliant parties. “We are considering our options when dealing with those charities that do not file their annual reports to the Charities Regulator,” he said. “It is possible to remove a charity from the Register of Charities. This has serious consequences–an entity that is not on the register is not permitted to call itself a charity or conduct any charitable work under the Charities Act. “It is also an offence under the Charities Act not to file an annual report with the Charities Regulator and we are actively contemplating acting against those charities that are not compliant,” he said. Mulholland said that the Charities Regulator could opt to prosecute a charity in the District Court. Prosecutions have been taken against entities acting as charities, which are not on the Register of Charities. To date, however, no prosecution has been taken against charities that do not file their annual reports. “The Charities Regulator is evolving and we have been in business since 2014. We take a proportionate response in relation to our interactions with charities and we tend to interact with charities rather than dictate actions to be taken,” Mulholland said. “Having said that, prosecutions against charities, which do not file their annual report with the Charities Regulator, will be the next step in the development of regulation of the sector.” Under the Charities Governance Code, Chartered Accountants looking after the accounts of a charity should have access to the minutes of the meetings of the charity’s trustees. “Accountants working with charities should be able to see these minutes, which should show that the trustees are taking an active part in the running of the charity and that the decisions they make are clear from the minutes,” said Mulholland. “There is also legislation before the Oireachtas, the Charities (Amendment) Bill 2022, which provides for the introduction of accounting regulations in relation to charities, which will supply a format for the preparation of financial statements in relation to charities. The Bill will also herald the introduction of Charities’ Statement of Recommended Practice (SORP) requirements for charities with an income of more than €250,000.” Already in force in Britain, SORP is not yet a requirement in the Republic of Ireland. The Charities Regulator is also continuing to promote the Charities Governance Code, which sets out minimum standards for managing and controlling Irish charities. The code was established to help charity trustees implement processes that meet their legal duties under charity legislation. “The code was rolled out in 2021 and we are pleased with the uptake, which is around 69 percent,” said Mulholland. “One of the aims of the code is to encourage transparency in Irish charities. One of the ways charities can show transparency is through the clarity of their financial statements. “We would also urge charities filing their accounts with the Companies Registration Office to file their full financial statements rather than their abridged statements.” In conclusion, Charities Regulator Chief Executive Helen Martin said that compliance with the Charities Governance Code, and with the requirements of the Charities Regulator, could only benefit individual charities directly. “It is public money that is being spent here,” Martin said, “and everybody from the donors to the Regulator to the charities themselves want to make sure that these funds are spent in a transparent and accountable manner.”

A milestone move to new premises has laid solid foundations for future growth at Crowe Ireland, says Naoise Cosgrove, the firm’s Managing Partner The recent move to new offices on Mespil Road marked an important milestone in the evolution of Crowe, the accountancy, tax and business advisory firm, founded 81 years ago in Dublin. For Naoise Cosgrove, who has been Crowe’s Managing Partner since 2016, the move also signalled the start of an important new phase in the life of a firm with deep roots in Irish business stretching back to 1941. “We have ambitious growth plans and a modern office that serves as a collaborative and social hub is essential to this,” Cosgrove says. “Our new home is a place to teach and learn, to share ideas and develop relationships that are central to our culture.” For Cosgrove, who began his career with Crowe in 1999, the strength of this culture has also been at the heart of his own progression with the firm, spanning two decades in corporate finance. “I see our culture as our greatest asset, and I think I was very fortunate at the outset of my own career to find myself at a firm with great people, and wonderful mentors. I have stayed with Crowe ever since,” he says. The move to Mespil Road also represents a significant investment for the firm. “We had been at our previous office in Marine House further along the Grand Canal since 1978. It was time for a change,” Cosgrove says. “Now, we have a best-in-class environment that allows our people to work collaboratively, share knowledge and ideas, and one that supports our hybrid working model. It is a very different workplace to the one JJ Bastow and Jim Charleton might have imagined when they founded this firm back in 1941, and it positions us for growth at a very exciting time.” Deep roots Originally known as Bastow Charleton, Crowe started life on Cavendish Row, working with cattle dealers attending weekly marts at the Dublin Cattle Market on Prussia Street. The practice established a strong presence in the meat and metal sectors throughout the forties and fifties. When Jim Charleton passed away in the early 1960s, his brother Joe, a tax practitioner, took over his interest in the practice, becoming a driving force in its expansion in the decade that followed. Bastow Charleton expanded further in the late eighties and early nineties, merging with Hogan Kenny Matthews and Clarke and Conroy O’Neill, both Irish firms. In 1995, it joined forces with Horwath International, the global network, to service the needs of clients internationally, rebranding subsequently as Horwath Bastow Charleton and, more recently, as Crowe Ireland. Newmarket Partnership, a specialist corporate firm, joined Crowe Ireland in 2014—followed, in 2015, by Newmarket Consulting, a boutique strategy and marketing consultancy business—and Phelan Prescott + Co, a Dublin-based accountancy firm, the following year. As part of the Crowe Global network, the Dublin firm is one of over 220 independent accounting and advisory members in more than 130 countries worldwide. “Our services are pretty comprehensive. We provide tax, audit, corporate finance, consultancy and outsourcing services,” says Cosgrove. “We work with private clients, sole traders and owner-managed businesses, alongside financial institutions, government agencies, not-for-profit, and multinational organisations.” This broad spectrum is, says Cosgrove, a big part of what makes Crowe Ireland a vibrant organisation. “We have been around for a long time, and I think a lot of our success has been down to our focus on client service—on developing deep lasting relationships with clients and colleagues,” he explains. “We have a holistic understanding of what their business is about. It’s not ever just about simply executing a task. It is about creating real value for them.” Vision for growth Notwithstanding the economic turmoil prompted first by the pandemic and, more recently, the war in Ukraine, Cosgrove is optimistic about the future. “There are clouds on the horizon—inflation, supply chain issues, and rising energy prices—but change is the one constant,” he says. “The Irish economy has been performing well and you would like to think that gives us a strong foundation to move forward, whatever the wider circumstances. Growth through acquisition is something we are looking at. The last time we brought in another practice was in 2017. “We would like to think there will be a level of consolidation in the market, which had maybe been slowed down by the pandemic, and that we will be playing an active role in that. Whether or not it happens in the next 12 months given global events is hard to say.” Corporate finance As well as his role as Managing Partner, Cosgrove also leads the corporate finance team at Crowe Ireland, specialising in the buying and selling of private companies, and acting for purchasers, sellers and funders. “I have always had an interest in business, even back when I was growing up in Waterford. I had a very good accounting teacher at secondary school, and I really enjoyed the subject,” he says. “I did a Business Degree at UCC and, from there, progressed into the world of accounting. I suspect, like many of my peers at the time, I didn’t necessarily know what accounting was all about—there were no accountants in my family—but I found I really enjoyed it. “I trained with Deloitte, in an audit environment mainly. I was fortunate enough to have a number of secondments during those four years, and I was keen to get into corporate finance.” In his corporate finance work with Crowe in the years since, Cosgrove has led transactions ranging from trade sales to private equity and MBOs, advising clients on strategy, valuations, joint ventures, finance negotiation, transaction structuring, and due diligence. “I enjoy being involved in deals and transactions—being able to make an impact, maximise value and look to the future for the businesses I work with, rather than in the rear-view mirror,” he says. Attracting talent Crowe Ireland currently has 14 partners and employs 140 people—and the firm is continuing to grow, recently appointing Aidan Ryan as a director of its audit and assurance department. A Chartered Accountant, Ryan joins Crowe from Moore where he was Audit Director for three years, having joined the firm in 2008. “We are very active in terms of recruiting at the moment across all departments—that is a constant,” says Cosgrove. “There is huge demand for talent. Everybody is feeling it. We get natural enquiry through the positioning we have in the market, through word-of-mouth and referrals. Attracting talent can still be challenging, however, and that has been exacerbated by COVID-19. “Now more than ever, I think the culture of an organisation really matters. The world has become very transactional in terms of how people connect and communicate. We interact in a very scheduled way through Zoom and Teams calls. We log on, we log off. There isn’t necessarily much room in that for the spontaneous ‘watercooler moments’ that can help to establish and build working relationships in a more organic way.” Crowe’s response has been to consciously create forums at its new Mespil Road premises that help people to feel more connected to the organisation and to each other, Cosgrove says. The office was officially opened last July by Minister for Finance Paschal Donohoe, TD. “Our investment in our office has centred on creating an open, inviting space, to give people a sense of the wider organisation and their part in it,” says Cosgrove. “We know that people need a reason to come into the office now. For some, that’s about learning. For others, it is about social connection. These are the forums we’ve focused on to help people feel more connected to the organisation and to each other.”

Julia Rowan answers your management, leadership, and team development questions I manage a large team which is split into three functions, each with a Team Leader, but I end up doing a lot of the TLs’ work.  When there is an issue to be resolved, they will summarise it in an email and ask ‘what do you want me to do?’. I have spoken to them about this several times, but they keep doing it. There are words, and there are actions. And ‘actions speak louder than words.’ A lovely pattern has been established here: they ask you for guidance, you tell them they shouldn’t—but you give it anyway. And off we go again. The longer this has been going on, the longer it will take to change it. You may need to be patient while a new pattern is established. Email is a lovely place to avoid conversation, so the first step might be to reply to these messages with something like ‘Delighted to talk this through with you—when suits?’. Then have a few great questions ready: ‘what’s important in this situation?’, ‘what are your options here?’, ‘how can I support you with this?’. These questions encourage the TLs to think through the issue themselves, while you offer support. If this does not change the pattern, you could reflect on what might be sustaining their dependency on you and ask questions about that: ‘We’ve talked about this a few times, and I notice you are still coming to me for direction. I feel that your instincts are good and I’m wondering what’s preventing you from suggesting a way forward / tackling this yourself….?’. If you meet with your three TLs as a group—which I hope you do regularly—you could make this an agenda point, encouraging them to report in on successes and challenges, supporting them in advising each other, etc.  Remember, they need to create a new pattern with their team members too. Two members of my team have had a dispute and are refusing to talk to each other or work together. It arose out of a simple enough miscommunication with ‘fault’ on both sides. I have been acting as a go-between in the hope that the situation would resolve itself, but it hasn’t. Team meetings have become very difficult as nobody speaks. Often there is huge hurt behind conflict – so go tenderly in this space. You could begin by reflecting on ‘what is reasonable?’. Is it reasonable for two adults (in their roles, on their salaries) to refuse to engage with each other in a way that other people must pick up the pieces? I might also reflect—as you are—on whether I am colluding with them and keeping the dynamic going. You could talk to them about the impact their behaviour is having on you and the rest of the team. Have a reasonable ‘ask’ worked out in advance. Offer support, or to get support (e.g. from HR), but be led by the requirements of the role. Make sure to notice, and give feedback in response to, even small improvements. But, be prepared for one, or both, to move on. If you read one thing... Turn the Ship Around – A true story of turning followers into leaders  by  David Marquet. Marquet was made commander of a submarine he had not been trained to run and had to rely on his crew—a huge challenge in a ‘command and control’ culture. You can find him on YouTube—‘What is leadership with David Marquet’. I recommend the animated Mindspring version. Julia Rowan is Principal Consultant at Performance Matters, a leadership team and development consultancy. To send a question to Julia, email julia@performancematters.ie

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.