On 3 June 2022 the European Commission announced its sixth package of sanctions against Russia. Further details are now available  on the Institute’s webpage on Sanctions. One of the measures is that the provision directly or indirectly of certain business-relevant services such as accounting, auditing including statutory audit, bookkeeping and tax consulting services, business and management consulting, and public relations services to the Russian government, as well as to legal persons, entities or bodies established in Russia are now prohibited. The relevant legal acts, a Decision 2022/884 and a Regulation 2022/879 have been published in the Official Journal. The recitals to Regulation 2022/879 provide a little more detail of the services which fall within the sanctions. They state that “......accounting, auditing, bookkeeping and tax consultancy services cover the recording of commercial transactions for businesses and others; examination services of accounting records and financial statements; business tax planning and consulting; and the preparation of tax documents….” Exemptions to the EU sanction are provided. There is an exemption for provision of services that are strictly necessary for the termination by 5 July 2022 of contracts which are not compliant with the Article (i.e now prohibited by the sanction) which were concluded before 4 June 2022 or of ancillary contracts necessary for the execution of such contracts. Exemption is also given for services that are strictly necessary for the exercise of the right of defence in judicial proceedings and the right to an effective legal remedy. An exemption is given for services for the exclusive use of entities established in Russia but owned, solely controlled, or jointly controlled, by an entity in an EU Member State. Derogations (which would have to be sought) are provided for services necessary for humanitarian purposes. The provisions are somewhat vague. For example, the wording on the applicable date is not entirely clear though it seems that the services are banned with a deadline for cessation of activities ,the provision of services that are strictly necessary, of 5 July 2022. Strictly necessary services are not defined either. On 24 June 2022 the EU Commission updated its FAQs to include an FAQ document on prohibition of certain business relevant services. You can click here to read the FAQs on sanctions on certain business relevant services. In the UK a ban on professional services exports to Russia was announced by the UK government  on May 4th.No further details have been publicly announced although we understand that legislation is being prepared on those sanctions. We will provide further information when available. Please see links below for some recent news items on this issue: European Commission press release on Sixth package of sanctions Arthur Cox, solicitors Linklaters Responses to the Russia/Ukraine Crisis – Sanctions Update No.3 Reed Smith This news item is provided as resources and information only and nothing in the news item  purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the news item. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the news item we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in the news item. Chartered Accountants Ireland can accept no responsibility for the content on any site that is linked to/from the Institute website. Links are provided in good faith for the potential support of members and students.

Welcome to this week’s Technical Roundup.  In developments this week, the European Securities and Markets Authority, the EU’s securities markets regulator, has published its latest edition of its Spotlight on Markets Newsletter and Enterprise Ireland this week held its second offshore wind forum. It is an event which provided Irish companies the opportunity to hear from and meet with international developers in the sector. Read more on these and other developments that may be of interest to members below. Auditing As part of their information series on ‘What IAASA does’, IAASA have released a second instalment focusing on the Financial Reporting Supervision (‘FRS’) function. Financial Reporting The Financial Reporting Council (FRC) are hosting a webinar on actuarial regulatory reform on 21 June 2022. Crypto The OECD recently published a report “Institutionalisation of crypto-assets and DeFi [decentralised finance]–TradFi [traditional finance] interconnectedness”. While it is aimed at institutional investor participation in markets for digital assets it may be of interest to those interested in crypto for a few reasons. It analyses the potential for increasing interconnectedness between TradFi and decentralised finance and identifies linkages between the two. It outlines the risks these growing markets may create, examines the potential benefits of the decentralisation of financial services and puts forward policy recommendations. You can access and download the report from the ECD website here. Other Areas of Interest The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its latest edition of its Spotlight on Markets Newsletter DETE has recently updated their webpage on EU trade sanctions in response to situation in Ukraine as of 3 June 2022 and their guidance notice  to 7 June 2022. The Minister for Public Expenditure and Reform spoke recently at the Irish Tax Institute Annual Dinner. Topics discussed included the economy, public finances, the economic outlook and climate action. He said of the latter that Ireland is committed to doing its part to address the climate crisis through the Climate Action Plan. He referenced the update in the planning code with the passing of the Maritime Area Planning Act 2021 to harness offshore wind and that the Government has committed to carbon pricing through the carbon tax which will be key to moving away from fossil fuels. You can read his speech here. Enterprise Ireland this week held its second offshore wind forum. It is an event which provided Irish companies the opportunity to hear from and meet with international developers in the sector. The first day examined the opportunity that exists in the UK and the UK’s industry ambition, investment, project pipelines and supply chain requirements. The second day focussed on the Irish market. Enterprise Ireland also formally launched the Gael Offshore Network at the event to bring together and grow expertise in Offshore Wind in Ireland. You can read more about the event and network here. The Health and Safety Authority this week published its Annual Report for 2021. It gives details of work carried out during the year and of the proposal to introduce a new Occupational Health division. This new division will centre its focus on various safety and health concerns in the Irish workplace including the impacts of the pandemic in accelerating the move to remote/hybrid working, the continued growth of the ‘gig economy’, the particular needs of vulnerable workers and migrant groups, and the impact of psychosocial issues in the workplace. You can download a copy of the report here. For further technical information and updates please visit the Technical Hub on the Institute website. 

The FRC has issued FRED 80 Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence. This Financial Reporting Exposure Draft proposes to update the Application Guidance to FRS 100 to reflect changes to company law and decisions on equivalence further to the UK’s exit from the European Union. The objective of FRS 100 is to set out the applicable financial reporting framework for entities preparing financial statements in accordance with legislation, regulations or accounting standards applicable in the United Kingdom and Republic of Ireland.   Comments on FRED 80 are requested by 26 August 2022.

In developments this week, Accountancy Europe has written a letter to the European Commission's Commissioner Mairead McGuinness on the development of purposeful and effective European sustainability reporting standards and IAASA has published its annual Profile of the Profession for 2021 which presents an overview of the Prescribed Accountancy Bodies’ members and students and includes statistics about regulatory and monitoring activities. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG has published a Draft Letter on the IFRS Interpretation Committee's Tentative Agenda Decisions in the final phase of implementing IFRS 17 Insurance Contracts and seeks constituents' views on the letter. The IFRS Interpretations Committee have issued its April 2022 update which includes the details of its recent meeting on 20th April. The Financial Reporting Council (FRC) has published new research, in conjunction with the UK Anti-Slavery Commissioner and Lancaster University, which has identified significant shortcomings in the quality of companies’ modern slavery reporting. Auditing IFAC has published “Audit Fees Survey 2022: Understanding Audit and Non-Audit Service Fees, 2013-2020”. As part of its ongoing consultation in relation to the proposed amendments to ISA (UK) 600, the FRC has invited stakeholders to its upcoming webinar on 4th May and virtual roundtables on 11th and 12th May The FRC has made changes to its Publication Policies for the Audit Enforcement Procedure (AEP) and the Accountancy and Actuarial Schemes (the Schemes). Sustainability Accountancy Europe has written a letter to the European Commission's Commissioner Mairead McGuinness on the development of purposeful and effective European sustainability reporting standards. Anti-Money Laundering and Sanctions FATF has recently published its first report on the state of effectiveness and compliance with the FATF standards. It gives a comprehensive overview of the state of global efforts to tackle money laundering, terrorist and proliferation financing. It states that the non-financial sector, including accountants generally have a poor understanding of risks from money laundering and terrorist financing and struggle to mitigate them. There are also some harsh conclusions on systems to monitor and enforce transparency in beneficial ownership. Fscom, a UK compliance firm, has recently published a handbook entitled “AML in Crypto Handbook“ which is a short introduction to Anti-Money Laundering in the context of cryptoassets. Their aim is to provide a beginner’s insight to cryptoassets from the point of view of an AML professional. The handbook is free to download from their website. The UK Financial Conduct Authority (FCA) recently conducted a review of financial crime controls in “challenger“  banks. Broadly speaking such banks are a sub-sector of retail banks which aim to reduce the market concentration of traditional high street banks through the use of technology and more up-to-date IT systems and some of them are online-only banks. The review found there is a need to improve how such banks  assess financial crime risk. Some are failing to adequately check their customers’ income and occupation, and, in some instances, challenger banks did not have financial crime risk assessments in place for their customers. You can read the press release here and the finding of the multi firm review here. The House of Commons library has recently published a research briefing entitled “Sanctions against Russia”. In it the briefing deals with the UK Sanctions regime prior to 2022, what prompted fresh sanctions, what sanctions the UK is imposing, co -ordinating with allies and the imposition of secondary sanctions. Readers should go to the website of the Workplace Relations Commission to read about information for Ukrainian Nationals on employment rights in Ireland. There is information on the website on employment law rights in Ireland in the Ukrainian language and the Russian language. The European Banking Authority (EBA) recently published a statement addressed to both financial institutions and supervisors to ensure they make every effort to provide access for Ukrainian refugees to at least basic financial products and services. They also set out how AML/CFT guidelines should apply .You can read details of the statement here. Members are reminded that you can locate further detailed information on sanctions generally on the Institute’s dedicated sanctions page which is being regularly updated at the moment. Other Areas of Interest Minister Robert Troy announced on 28 April 2022 that the “interim period” introduced under the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 (“2020 Act”) has been further extended to 31 December 2022. It had been due to expire on 30 April 2022. The 2020 Act among other provisions made it possible for company meetings, for example AGMs and EGMs, class meetings and scheme meetings to be held virtually. It also increased the period of company examinership to 150 days and increased the threshold at which a company is deemed unable to pay its debts to €50,000. The Minister said this is likely to be the final extension but also noted that work is ongoing to put virtual AGMs and general meetings on a permanent statutory footing. The European Data Protection supervisor (EDPS) recently published his Annual Report 2021 - you can read the press release here and the executive summary here. The report covers a huge amount including an overview of the EDPS’ supervisory activities such as the supervision of Europol and the European Public Prosecutor’s Office. In one of its news items on the annual report the EDPS refers to its’ work on international transfers of personal data; on COVID-19; on the Area of Freedom, Security and Justice; as well as the EDPS' legislative consultations and technology monitoring activities. Late last year the Central Bank gave notice of its intention to establish a Climate Risk and Sustainable Finance Forum. In recent days it has published a call for interest to the forum. You can read the press release here. The forum will be consultative and will meet twice a year, with the inaugural meeting taking place on 29 June 2022. It is looking for expressions of interest from the likes of financial sector representative bodies, financial sector participants (firms), experts on climate change. Selection criteria are set out in the call for interest and you can complete the expression of interest form here. The Central Bank Director General of Financial conduct recently addressed an Institute of Banking/Compliance Institute seminar on “The importance of effective governance, culture, and agility in a changing environment". She spoke about topics including the Central Bank’s strategic approach, standards and the enhanced Individual Accountability Framework, Structural changes in the Irish retail banking sector and Sustainable finance and the risks of greenwashing. You can read her remarks here. The Dept of Finance (DOF) this week launched Ireland’s first Women in Finance Charter. The Charter is open to all financial services firms operating in Ireland and signatories commit their organisations to improving the number of women in management and board level positions to achieve better gender balance and a more inclusive working environment. You can read the press release here and see the current list of signatories to the Charter. DOF has also recently published its Economic Insights – Spring 2022 which provides analysis and insights on topical economic issues and developments. You can download here. IAASA has published its annual Profile of the Profession for 2021 which presents an overview of the Prescribed Accountancy Bodies’ (PABs) members and students and includes statistics about regulatory and monitoring activities. The Charity Commission for Northern Ireland has issued some useful information on the Charities Act (Northern Ireland) 2022. Readers may be interested in the recent publication of the Consumer Rights Bill 2022. This new draft legislation will bring about a number of positive changes for consumers and for the first time, consumer protections will be extended to digital goods and services so that consumers are protected when they use cloud services or buy downloadable or streamed goods and services, including games, films, music and software. The Competition and Consumer Protection Commission has welcomed the publication of the bill and you can read more about it on their website here where you will also find a link to the draft legislation. National Standards Authority of Ireland is Ireland’s official standards body under the auspices of DETE. It recently launched its new strategy for 2022-2026 – Innovating to Shape a Safer, Better, and Sustainable Future. The strategy is stated to give priority to Climate Action and Sustainability; to Digital Transformation; to Construction, with a particular focus on housing; and to Medical Technology. You can download the strategic plan here . In other FCA news, the CEO recently delivered a speech on the critical issues in financial regulation: The FCA's perspective. He mentioned issues such as the war in Ukraine, economic, social and governance (ESG) reforms, diversity and inclusion, accountability and performance and innovation and crypto. You can read the speech here. For further technical information and updates please visit the Technical Hub on the Institute website. 

The Financial Reporting Council (FRC) has published a new Audit Firm Governance Code for the Big Four audit firms and firms that audit FTSE-350 companies and significant numbers of public interest entities (PIEs).   The new Code is a result of the findings of a monitoring programme undertaken by the FRC which identified scope to further strengthen its oversight and governance and to align the provisions of the Code with Operational Separation for the Big Four firms.   It separates the roles of the board chair and senior partner/chief executive, clarifies the role played by partnership boards in holding management to account and introduces criteria for board composition, reinforcing the position of independent non-executives within audit firms. For the largest audit firms, it sets out a clearer distinction between the role of Independent Non-Executives (INEs) and Audit Non-Executives (ANEs). The new Code also more closely aligns with the UK Corporate Governance Code, emphasising the importance of long-term sustainability, culture and employee engagement.

Welcome to this week’s Technical Roundup.  In developments this week, the Chartered Governance Institute UK & Ireland recently published a very useful summary of company law changes including some changes to the Companies Act 2014. The provisions of the Companies (Corporate Enforcement Authority) Act 2021 have not yet been commenced but that is expected very shortly and 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. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) invites users and preparers to complete either or both of its online questionnaires on Non-current Liabilities with Covenants and Supplier Finance Arrangements by 4 March 2022. EFRAG has issued a Feedback Statement on the post implementation review of IFRS 9 classification and measurement. This feedback statement summarises constituents' feedback on EFRAG's Draft Comment Letter and explains how EFRAG considered this feedback in developing its Final Comment Letter. The UK Endorsement Board (UKEB) has published its draft Due Process Handbook on the UKEB website. It sets out the due process the Board plans to apply to its activities, enabling it to uphold its guiding principles of accountability, independence, transparency and thought leadership when fulfilling its statutory functions. Auditing The International Auditing and Assurance Standards Board (IAASB) have released a First-time Implementation Guide for ISA 220, Quality Management for an Audit of Financial Statements. The guide will help stakeholders understand the standard and properly implement its requirements as intended. Insolvency The Companies Registration Office has confirmed that from 1 March 2022 certain forms which includes certain insolvency forms will be become mandatory online filings only. The list of forms for mandatory online filing are available here and it is noted that forms received by post after this date will be returned for online submission. Other Areas of Interest The Institute recently responded to Phase II of a consultation by the Decision Support Service (DSS). The DSS’s new statutory service will include the replacement of wardship for adults. As part of the new arrangements a circuit court can make an order appointing a suitable person to the role of decision-making representative (DMR) from a panel of experts. A DMR’s role is to make certain decisions on behalf of a person if they are unable to make those decisions themselves. As a DMR can be appointed to make decisions about property or money matters, accountants may be required to sit on this panel. In Phase II, the DSS consulted on a number of codes including the draft Code of Practice for Decision-Making Representatives. The Institute responded to the consultation, highlighting matters of potential concern to members who may be appointed a DMR including potential conflicts of interest issues and record keeping requirements. Companies are embracing the spirit of the Wates Principles.  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 Chartered Governance Institute UK & Ireland recently published a very useful summary of company law changes including some changes to the Companies Act 2014. The provisions of the Companies (Corporate Enforcement Authority) Act 2021 have not yet been commenced but that is expected very shortly .You can read the summary of changes by following the link here. Readers interested in crypto assets might be interested in a recent report of the Financial Stability Board (FSB) “Assessment of Risks to Financial Stability from Crypto-assets“. FSB is an international body that monitors and makes recommendations about the global financial system. The report provides the FSB’s view on recent developments in crypto-asset markets and their implications for global financial stability. You can also click here to hear an interview on Times Radio by FSB Secretary General Dietrich Domanski who explains the FSB's assessment of risks arising from crypto-assets. The Department for Digital, Culture, Media and Sport in the  UK has recently published its Cyber Security Sectoral Analysis 2022 Research report. The Cyber Security Sectoral Analysis project has helped to track the growth and performance of the UK’s cyber security sector since 2018.The report builds on previous reports and contains information about the UK cyber security sector, including the number of businesses, the sector’s contribution to the UK economy, the number of people employed and the products and services offered by these firms. The Central Bank Governor recently addressed the European Financial Forum speaking on Trends and Transitions: an Irish perspective on global and European regulation. He spoke on some familiar themes including  economic resilience, the green transition and  digital transition and also the changing financial system with large growth in the financial sector outside the traditional banking system and open economic and financial strategic autonomy with the aim of boosting the role of the European Union on the world stage. In other Central Bank activity, the Director of Financial Regulation spoke recently to the Compliance Institute about evolving financial regulation and how effective regulation supports economic activity. He also spoke about the individual accountability regime and consumer protection. On Thursday 24 February the Irish Commissioner for Data Protection launched the Irish Data Protection Commission’s Annual Report for 2021.You can read the press release here and details of the report here including figures for complaints ,queries and breach notifications and the inquiries and investigations carried out . Readers may be interested in the Low Pay Commission Consultation on the National Minimum Wage 2023.The Low Pay Commission makes recommendations to the Minister for Enterprise, Trade and Employment designed to set a minimum wage that is fair and sustainable. It is currently looking for views on the National Minimum Wage rate for 2023.The consultation is open from 23 February to 23 March 2022. Companies have been urged to take advantage of Local Enterprise Week across the country. Free online and physical events are being hosted by enterprise offices from 7 to 11 March supported by local authorities and Enterprise Ireland. Some of the topics include “Future Proofing Your Small Business”, “Internationalising Your Business”, “Going Green” and “Show Me the Money”. Click here for the press release and here for more information on the events and how to register. For further technical information and updates please visit the Technical Hub on the Institute website.