Governance

The Institute features in the Irish Government’s Finance strategy to further establish Ireland as the recognised global location of choice for international financial services. The 2024 Action Plan, published last Friday, 8 March 2024, details various key measures to realise this ambition, in collaboration with public and private sector stakeholders. Contributing to the development of the plan the Institute, as a stakeholder, highlighted our focus on developing skills and awareness across all key pillars of sustainable finance, including governance, reporting, assurance, and regulation. Commenting, Head of Ethics and Governance, Níall Fitzgerald referred to a range of activities the Institute is also engaged in that further supports the plan’s objectives including advocacy (e.g. consultations and representations to regulators and standard setters), member engagement, and external collaborations such as Chapter Zero Ireland, Accounting 4 Sustainability and Chartered Accountants Worldwide. A copy of the Institute’s submission is available here

The Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.   The research shows that companies are grasping the spirit of the Wates Principles in their governance reporting. They are using the principles as a tool for self-reflection and improvement, and seeing the yearly governance reporting as an opportunity, not a burden. This research also includes examples of good reporting and acknowledges that it is too early to draw too many conclusions as most companies were in their first cycle of reporting. The financial sector was the biggest adopter of the Wates Principles.

The Financial Reporting Council (FRC) has announced important revisions to the UK Corporate Governance Code (the Code).  The revisions aim to enhance transparency and accountability of UK plc and deliver on the FRC’s intentions following the FRC’s largest ever stakeholder consultation on the Code in 2023. The FRC has kept changes to the Code to the minimum that are necessary. The FRC is conscious that the expectations for effective governance must be targeted and proportionate. In addition the FRC has published guidance to the Code. The purpose of this guidance is to support those who use the Code by providing advice, further detail and examples but it is not intended to be prescriptive. To make the guidance user-friendly, the FRC has included links in the Code to relevant sections of the guidance, and links in the guidance to other materials which may be of interest. The FRC will be keeping the guidance under regular review to ensure it is relevant and up to date.  The revised code can be accessed here.