The fourth and fifth EU anti money laundering directives introduced obligations on entities to obtain and hold adequate, accurate and current information on beneficial ownership and on member states to ensure that beneficial ownership information is stored in a central register located outside a company (Central Register). In Ireland these obligations were introduced under the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 (“2019 Regulations”). In the 2019 Regulations, unrestricted access to the information in the Central Register is afforded to certain persons as set out in the 2019 Regulations and restricted access to information in the Central Register will be made available to the general public and designated persons for example a bank carrying out customer due diligence. In 2022 the Court of Justice of the European Union ruled that access of the general public to information on beneficial ownership registers constituted an interference with rights of personal privacy and data protection under articles 7 and 8 of the EU Charter of fundamental rights. Readers might note that Ireland has recently responded to the CJEU ruling by implementing the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) (Amendment) Regulations 2023 on 13 June 2023 .Now ,under the restricted access heading  it must now be shown (by “any person” as opposed to “a member of the public” under the 2019 Regulations) that the corporate or other legal entity  about which information is sought  (i) is connected with persons convicted (whether in the State or elsewhere) of an offence consisting of money laundering or terrorist financing, or (ii) holds assets in a high-risk third country. If this can be shown then the person will be able to access the name, month and year of birth, nationality, country of residence, and the statement about the nature and extent of the beneficial interest held. This information is provided as resources and information only and nothing in these pages 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 pages. 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 these pages, 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 these pages.

In developments this week, the Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting; the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. Read more on these and other developments that may be of interest to members below. Assurance and Audit Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms has been issued. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting.  The report, commissioned by the FRC and conducted by independent research agency YouGov, involved qualitative interviews with 40 ACCs of Public Interest Entities (PIEs), representing a diverse range of organisations, including FTSE 100 and FTSE 250 companies, other listed equities, building societies, and unlisted banks.  The FRC has published a response to the consultation on proposed amendments to the Audit Enforcement Procedure (AEP) and related guidance launched on 3 April 2023. The main purpose of the proposals was to effect changes to the decision-making remit of the Board and the Case Examiner under Part 2 of the AEP (Initial Stages). Financial Reporting The Financial Reporting Council (FRC) has updated its guidance to Actuarial Standard Technical Memorandum 1 (AS TM1) version 5, which provides clarity on the application of some paragraphs within the standard. The International Accounting Standards Board (IASB) has issued the June 2023 IFRS for SMEs Accounting Standard update. This covers news, events and other developments in the standard during the month. This update includes an overview of the proposed amendments to the standard relating to the Pillar Two model rules. Insolvency For the first time in Ireland, the Court has appointed an Examiner to a foreign registered, non-EU company on the basis that its centre of main interests is in Ireland. McCann FitzGerald solicitors are acting for the Company in examinership and has summarised this precedent appointment. We have recently been engaging with the Examiner of the High Court who has noted that Judge Quinn, who manages the Examiner’s Court List, is keen to finalise a number of old liquidations in the coming months. The Examiner is seeking the engagement of Liquidators in helping to finalise these matters. In that regard, the Examiner will shortly be in contact directly with the Solicitors who act for Liquidators in these matters asking for papers to be submitted for a Final Application to the Court and your co-operation in preparing up to date Liquidator’s Reports would be greatly appreciated. Sustainability The International Sustainability Standards Board (ISSB) has announced that it will issue its sustainability standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures on 26 June 2023. Accountancy Europe have made available some working documents which compare the first set of European Sustainability Reporting Standards (ESRS) proposed in the recent Delegated Act to the European Financial Reporting Advisory Group’s original drafts. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a Call for Evidence (CfE) on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II. The objective of this Call for Evidence (CfE) is to gather industry feedback that will help better understand the evolution of the market and provide answers as to how firms apply the new MiFID rules on sustainability. The FRC has issued its response to the ISSB consultation on the methodology for enhancing the international applicability of the SASB Standards and SASB Standards Taxonomy updates. Other News Accountancy Europe has published its June 2023 SME update. The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has this week launched a public consultation on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management. The consultation runs until 11 September 2023. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. It sets out the key achievements of the authority in fulfilling its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU) during a transformative year.   The European Banking Authority (EBA) has published its Report on money laundering and terrorist financing (ML/TF) risks associated with EU payment institutions. Its findings suggest that ML/TF risks in the sector may not be assessed and managed effectively by institutions and their supervisors. The Central Bank has published its second Quarterly Bulletin of 2023. For further technical information and updates please visit the Technical Hub on the Institute website.

Chartered Accountants Ireland have issued  Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The TR was prepared in consultation with the Central Bank of Ireland.  The deadline for the reports is 31 October 2023. The letter sent to payment and electronic money firms requested the firm to obtain a specific audit of compliance with the safeguarding requirements under the European Union (Payment Services) Regulations 2018 (“PSR”) and/or European Communities (Electronic Money) Regulations 2011 (“EMR”).  As set out in the Central Bank letter one of the most important objectives for the Central Bank is that user funds are protected. Recent submissions from the sector as well as other communications received from firms highlighted that one in four payment and e-money firms have self-identified deficiencies in the safeguarding risk management frameworks . The nature and scale of these deficiencies indicated that some firms do not have robust safeguarding arrangements in place. The Firm has been asked to prepare a detailed document setting out a description of certain aspects of its organisational arrangements to secure its compliance with the relevant safeguarding requirements under the PSR/EMR and an assertion, approved by the board of directors, stating that in all material respects the description is fairly presented and the controls and processes included in the description were operating as described at the reference date. The statutory auditor (or other audit firm) performs a reasonable assurance attestation engagement, in relation to this assertion. This engagement is separate from the statutory audit of the financial statements of the Firms and does not in any way form part of the statutory audit and may be carried out by the Firm’s statutory auditor or other audit firm. This guidance has been prepared in consultation with the Central Bank. This TR should be read in conjunction with International Standard on Assurance Engagements 3000 (Revised) “Assurance engagements other than audits or reviews of historical financial information” (ISAE 3000 (Revised)).

Welcome to this week’s Technical Roundup. In developments this week, the World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards; the Financial Conduct Authority (FCA) has issued financial promotion rules for cryptoassets and a consultation on guidance on how it approaches, and how firms comply with, FCA requirements that crypto-asset financial promotions must be fair, clear and not misleading. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published its thematic review of fair value measurement. This publication reflects the FRC’s Corporate Reporting Review team’s experiences with IFRS 13 and has a particular focus on disclosure matters, with some measurement issues also discussed. The FRC has also published research into the impact of proxy voting advisors and ESG ratings agencies on actions and reporting by FTSE350 companies and investor voting decisions. The IFRS Interpretations committee has issued its June 2023 update which includes details of some of the requests that it has received in relation to; A merger between a parent and its subsidiary (IAS 27) Application of the ‘Own Use’ Exception (IFRS 9) Consolidation of a non-hyperinflationary subsidiary by a hyperinflationary parent (IAS 21 & IAS 29) In order to understand preparer’s views on the International Accounting Standards Board’s (IASB) upcoming Request for Information on the implementation and application of IFRS 15, the UK Endorsement Board is holding some roundtables on 20 and 21 June. Insolvency The Financial Conduct Authority is placing a ban on debt packagers receiving remuneration from debt solution providers. The ban covers any commission, fee or any other financial consideration, received by a debt packager firm, directly or indirectly, from a debt solution provider in connection with the firm referring customers to a debt solution provider, or any other related services.   Sustainability Accountancy Europe is hosting an in-person event on 5 July 2023 at their Brussels offices – CSRD: Striving for Consistent and Quality Sustainability Assurance Engagements across the EU. The European Commission launched a consultation this week seeking feedback in relation to draft delegated regulation supplementing Directive 2013/34/EU as regards sustainability reporting standards. The European Sustainability Reporting Standards (ESRS) in the draft Delegated Act include significant revisions to the draft standards recommended by the European Financial Reporting Advisory Group (EFRAG) in November 2022, which include additional phase-ins, making certain disclosures voluntary, and making all disclosure requirements (apart from a set of general disclosures) subject to materiality assessments. The consultation closes on 7 July 2023. The World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards.   Cryptoassets The Financial Conduct Authority in the UK has some recent publications on cryptoassets It released it latest 'Research Note: Cryptoassets consumer research 2023'. The research series began in 2019 to understand the trend in UK adults’ cryptoassets holdings and changes in consumer behaviour and is continued annually to gain further insights into the potential harms and benefits of cryptoassets and understand consumers’ attitudes towards cryptoassets. The FCA says the results from this research will be used to inform its cryptoassets policy work. In the conclusion it is stated that cryptoassets remain a high-risk investment, and anyone who looks to purchase them should be aware of the risks and be prepared to lose all their money. Cryptoassets predominantly sit outside of the FCA’s current regulatory perimeter and users of cryptoassets are unlikely to be covered by financial protections such as the FSCS. In further crypto news the FCA also issued Financial promotion rules for cryptoassets and a consultation on guidance on how it approaches, and how firms comply with, FCA requirements that crypto-asset financial promotions must be fair, clear and not misleading. All cryptoasset firms marketing to UK consumers, including firms based overseas, will need to comply with the UK financial promotions regime from 8 October 2023.  The UK Government is bringing promotions of certain cryptoassets within their remit. The financial promotions regime will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion.   Other News The CCAB-I Business Law Committee submitted a response to the Department of Enterprise, Trade and Employment public consultation on proposed amendments to Companies Act 2014. The response which is available on our website focused on responding to the areas which most impact members from a technical perspective. The Central Bank Deputy Governor spoke recently at the Banking and  Payments Federation Ireland  Retail Banking Conference 2023.The topic was ESG integration in the banking sector. The conclusion was while there is much done, there is much more to do and details of the speech can be accessed here. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its follow-up report to the peer review on the Guidelines on ETFs and other UCITS issues. The report shows that the National Competent Authorities (NCAs) have strengthened their supervisory practices, enhanced internal and external guidance, and performed supervisory work in the area of Exchange-traded funds (ETFs) and other Undertakings for Collective Investment in Transferable Securities (UCITS) since 2018. The Department of Enterprise, Trade and Employment invites expressions of interest from suitably qualified individuals for membership of the Enterprise Digital Advisory Forum (EDAF).  Established in May 2022, the forum plays a key role in advising and working with government to drive industry adoption digital technologies, in accordance with the National AI Strategy and the National Digital Strategy. The UK Financial Intelligence Unit has recently published its latest SARs Reporter Booklet for June 2023 . It provides case study examples highlighting the work of law enforcement agencies in utilising SAR intelligence to initiate investigations and to inform existing ones. The Irish Workplace Relations Commission has, for information purposes published a WRC Remedies Table  (last revised May 31 2023) which sets out the remedies that may be granted by a WRC Adjudication Officer in the different areas of employment and equality legislation which come under the WRC’s jurisdiction. While the WRC states that the table should not be relied upon in place of legal advice and the WRC accepts no liability for reliance on it is a useful summary table for anyone with an interest in employment law. The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are standards which multinational enterprises are expected to meet, and which OECD member countries have committed to uphold. The Guidelines are recommendations on responsible business conduct and provide non-binding principles and standards in a global context. The 2023 edition of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct has recently been published and they can be accessed by going to this page where key updates are also summarised. For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this week’s Technical roundup. In developments this week, IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been re-published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation; from 11 June 2023, the CRO will require the submission of a company director’s Personal Public Service (PPS) Number when completing certain forms related to their organisation. Read more on these and other developments that may be of interest to members below. Financial Reporting The IASB is expected to publish a Request for Information (RFI) on its Post-implementation Review (PIR) of IFRS 15 Revenue from Contracts with Customers during June 2023. The standard has been effective for UK companies in scope since annual periods commencing on or after 1 January 2018. The objective of the IASB’s PIR is to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors, and regulators are as intended when the IASB developed those new requirements. The UK Endorsement Board is expected to publish a Draft Comment Letter (DCL) to the IASB to obtain stakeholder views. In addition, to understand stakeholder views on the implementation of IFRS 15 by UK companies, the UKEB is holding dedicated roundtables for preparers on Tuesday 20 June and Wednesday 21 June. Audit IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation. The FRC has recently published revisions to proposed International Standard on Auditing (UK) 505 – External Confirmations. The revisions reflect recent enforcement findings as well as ensuring that the standard reflects modern approaches to obtaining confirmations, with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions and a prohibition on negative confirmations.   Other news Sustainability European Sustainability Reporting Standards. In the second of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Orla Carolan, Director in Grant Thornton demonstrated how to navigate the content and disclosures included in the first set of ESRSs, what undertakings should do to prepare for implementation, and how to understand more about the requirements of the CSRD. Watch the recording here. CRO updates Mandatory online filing for certain Companies Registration Office forms from Sunday 11 June.  From 11 June 2023, the Companies Registration Office will require the submission of a company director’s Personal Public Service (PPS) Number when completing certain forms related to their organisation. With the commencement of section 35 of the Companies (Corporate Enforcement Authority) Act 2021, the CRO will now require a director’s PPS number to be included in the below filings: Form A1- An application made to incorporate a company Form B1 - An annual return of a company of which they are a director. This information will be required for all directors of the company Forms B10/B69 - A notice of change of directors or secretaries by a company of which they are a director. For more information on these requirements, including the Verification of Identity process, visit the CRO website or contact them by email and read here the news item from DETE on Minister Calleary’s announcement of the new identity verification requirements for company directors. The Pensions Authority has reminded trustees that pension schemes must be wound up by the relevant deadline or meet the new standards under the Pensions Act. The Department of Enterprise, Trade and Employment is hosting a Trade Horizons Conference on the benefits of Free Trade Agreements (FTAs) for Irish businesses, particularly SMEs, on 6 July 2023. There will be discussion on discuss evolving trade policy including the increased opportunities offered by FTAs and the government supports available to help access them. The European Union (Cross-Border Conversions, Mergers and Divisions) Regulations 2023 (“Regulations”) were signed into force by the Minister for Enterprise Trade and Employment on 24 May 2023. The Regulations give effect to an EU directive on cross-border conversions, mergers and divisions and introduces for the first time an EU harmonised framework available to in-scope companies for cross-border conversions and divisions. The Regulations apply to Irish limited companies which can now avail of enhanced and harmonised EU regime allowing them to convert and divide across other EEA jurisdictions. You can read some brief background from DETE on the Directive and its implementation here. Financial Stability Review Risks to financial stability stemming from the rest of the world have increased, while the Irish economy has proved resilient to the inflationary shock so far, the Financial Stability Review published on 7 June 2023 by the Central Bank of Ireland shows. The report outlines the Central Bank’s assessment of key risks facing the financial system, the resilience of the economy and financial system to adverse shocks, and policy actions to safeguard stability. In his opening remarks, Governor Gabriel Makhlouf said a recurring theme of these Reviews in recent years has been the sheer level of uncertainty owing to the interlocking shocks of the pandemic, Russia’s war against Ukraine and the current inflationary episode alongside the speed with which these events have unfolded and transmitted across the globe. For further technical information and updates please visit the Technical Hub on the Institute website.                                  

Welcome to this week’s Technical Roundup.    In developments this week, IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been re-published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation; the Financial Reporting Council has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. Read more on these and other developments that may be of interest to members below.  Financial Reporting The Financial Reporting Technical Committee of Chartered Accountants Ireland has responded to the Financial Reporting Council’s recent exposure draft ‘FRED 83’. The amendments proposed in this exposure draft address how deferred tax should be accounted for under FRS 101 and FRS 102 where a company is subject to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules. The European Financial Reporting Advisory Group (EFRAG) has issued an updated Endorsement Status Report, which now reflects the publication of amendments to IAS 7 and IFRS 7 (Supplier Finance Arrangements) and IAS 12 (Pillar Two Model Rules). The IASB has published the Exposure Draft International Tax Reform- Pillar Two Model Rules- Proposed Amendments to the IFRS for SMEs Standard. This follows similar proposed amendments to International Accounting Standards and FRS 102. The IASB has issued its May 2023 update and podcast. IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation. The UK Endorsement Board (UKEB) has issued its draft comment letter relating to the IASB Exposure Draft Amendments to Classification & Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) for public consultation. Comments on this are requested by 26 June 2023. The UKEB is holding some roundtable discussions on 20 and 21 June to discuss the IASB’s forthcoming Request for information on the Post-Implementation Review of IFRS 15. This month’s International Accounting Standards Board (IASB) meeting was held on 22-24 May. The May IASB Update podcast includes: a summary of the supplementary meeting the IASB held on 3 May about proposed amendments to the IFRS for SMEs Accounting Standard relating international tax reform; progress made in the Primary Financial Statements project; The International Accounting Standards Board (IASB) on 30 May launched a call for stakeholders’ feedback on its post-implementation review of the expected credit loss requirements in IFRS 9 Financial Instruments.  The ‘expected credit loss’ model in IFRS 9 replaced the previous ‘incurred credit loss’ model, which only allowed credit losses to be recognised when a loss event occurred. The UKEB has published a joint Draft Endorsement Criteria Assessment on Classification of Liabilities as Current or Non-current — Amendments to IAS 1 issued by the IASB in January 2020; and Non-current Liabilities with Covenants —Amendments to IAS 1 issued by the IASB in October 2022. Comments are requested by 8 June 2023. Audit The Financial Reporting Council proposes to revise International Standard on Auditing (UK) 505 External Confirmations to reflect recent enforcement findings and to ensure that the standard is reflective of modern approaches to obtaining confirmations with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions and a prohibition on negative confirmations. Comments are requested by 1 September 2023. The Financial Reporting Council (FRC) has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. The Scalebox initiative aims to promote competition and choice in the PIE audit market and support the FRC's role as an Improvement Regulator. Insolvency The CCAB-I Insolvency Committee has recently published Technical Alert 03 2023 Changes to examinership regulations. This Technical Alert provides updates on significant changes to the examinership process following the introduction of The European Union (Preventive Restructuring) Regulations 2022 (SI 380/2022) and outlines a number of the key amendments to Companies Act 2014 arising from the transposition of EU Directive 2019/1023. Sustainability In its recently released publications, the International Federation of Accountants (in collaboration with the We Mean Business Coalition , Accounting for Sustainability, the Global Accounting Alliance and World Business Council for Sustainable Development) discuss how accountants can get greenhouse gas reporting in order. Other News The European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published a joint Discussion Paper seeking stakeholders’ input on aspects of the Digital Operational Resilience Act (DORA). This Discussion Paper follows the European Commission’s request for technical advice on the criteria for critical ICT third-party providers (CTPPs) and the oversight fees to be levied on them. Interested stakeholders are invited to provide their input by 23 June 2023. For further technical information and updates please visit the Technical Hub on the Institute website.