Welcome to this week’s Technical Roundup.
In developments this week, IAASA has published a Consultation Paper on its proposals to issue revised versions of ISQM (Ireland) 1, ISQM (Ireland) 2, and ISA (Ireland) 220, the IAASB released an updated version of their First-time Implementation Guide for ISQM 1, the European Securities and Markets Authority launched a consultation on proposals for improvements to the MiFID II framework on best execution reports, and the Minister for Finance announced that there will be no change to the Employment Wage Subsidy Scheme (EWSS) for the month of October 2021.
Read more on these and other developments that may be of interest to members below.
Accounting
The IASB have recently updated their workplan since it was last revised in July 2021.
Accountancy Europe hosted a podcast entitled “Reporting Beyond the Financials: Sustainability on the Books” which discusses how a sustainable future begins with corporate reporting.
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator launched a consultation on proposals for improvements to the MiFID II framework on best execution reports. These proposals aim at ensuring effective and consistent regulation and supervision and enhancing investor protection.
The ESMA also published the MiFID II/MiFIR review report on algorithmic trading. The Final Report concludes that no fundamental issues have emerged with respect to the MiFID II algorithmic trading regime which has overall delivered on its objectives. The ESMA made some recommendations which aim at both simplifying the regime and making it more efficient.
The FRC's Financial Reporting Lab is inviting companies, service and systems providers, investors and other interested parties to participate in a new project looking at how companies produce ESG data.
Auditing
IAASA has published a Consultation Paper on its proposals to issue revised versions of ISQM (Ireland) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements; ISQM (Ireland) 2, Engagement Quality Reviews; and ISA (Ireland) 220 (Revised), Quality Management for an Audit of Financial Statements.
The International Auditing and Assurance Standards Board (IAASB) have released an updated version of their First-time Implementation Guide for International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, which was previously issued in June. Read more here.
Anti-Money Laundering
The UK Government recently published the National Risk Assessment of Proliferation Financing to further strengthen its counter-proliferation system. Proliferation Financing (PF) is financing for the malicious use of chemical, biological, radiological and nuclear materials and weapons. The publication notes that awareness of PF risk in the Designated Non-Financial Businesses and Professions (DNFBPs) sector is, in general, low in most countries, which could represent a particular risk to the UK, notably in relation to trust and company service providers given the ease of establishing companies in the UK.
The Irish Department of Justice (DoJ) is seeking expressions of interest from potential members of a new Advisory Council against Economic Crime and Corruption. In December 2020 the Hamilton Report recommended the establishment of a permanent cross-sectoral, partnership-based Advisory Council against Economic Crime and Corruption. The DoJ has now issued a call for expressions of interest for an independent Chairperson and six ordinary members. The deadline for applications is 3 pm on Friday 8 October. Further information on the selection process is available here.
The UK Government has recently published draft legislation together with an explanatory note for a new levy on the anti-money laundering (AML) regulated sector. The levy is intended to fund government action and initiatives to tackle money laundering. The amount charged is to be based on UK revenue and depends on whether the entity is considered “medium”,” large” or “very large” as defined in the draft legislation.
Other Areas of Interest
The Charity Commission for Northern Ireland has been developing a stakeholder engagement forum to support the regulator in hearing a wide range of views from across the charity sector. The first meeting of the group took place on 22 September.
In the UK, the temporary provisions put in place under the Corporate Insolvency and Governance Act 2020 ("CIGA") regarding winding up provisions will expire on 30 September 2021. However, there are new temporary provisions that will be in place until 31 March 2022.
The Irish Government has published its legislative programme for the autumn 2021 Oireachtas session. Draft legislation which may be of interest to members include the Central Bank (Individual Accountability Framework) Bill which is on the priority list, the Charities (Amendment) Bill (to make amendments to the Charities Act 2009),the Co-operative Societies Bill (to consolidate and modernise the existing Industrial and Provident Societies legislation) and the Limited Partnership Bill (to modernise the Limited Partnership Act 1907) all of which are heads in preparation stage and the Gambling Regulation Bill (to provide for a modern approach to the licencing of gambling activities and to establish a gambling regulator) in relation to which revised heads are underway.
The UK Competition and Markets Authority (CMA) recently called for views to help inform its advice to government on how competition and consumer regimes can better support the UK’s Net Zero and sustainability goals. It calls for input from public bodies, businesses, non-governmental organisations and consumers to consider their contribution to the achievement of the UK’s Net Zero and environmental sustainability goals. The call for inputs is open until 10 November 2021.
IFAC and ACCA last week hosted their third annual Climate Week NYC event: Plugging the Net-Zero Information Gap. The event brought together finance and accounting professionals to better understand the information gap that exists between business and investors and what could be done to address it. A recording of the event and takeaways are now available.
The Property Services Regulatory Authority (PSRA), in conjunction with IPAV and SCSI, have revised and updated the Joint Sector Protocol for Property Service Providers. The Protocol is applicable to Property Services Providers and Valuers for the auction, sales, lettings, valuations and property management environment for both residential and commercial property. Please note that the document “Property Services Providers Guidance to implementing the Plan for Living with Covid 19” is no longer applicable.
The Minister for Finance, Paschal Donohoe, T.D., has announced that there will be no change to the Employment Wage Subsidy Scheme (EWSS) for the month of October 2021. No decisions have yet been taken as to the appropriate operational parameters for EWSS for the remainder of Quarter 4 2021 and its possible extension beyond end-2021. The Minister is considering a range of possible options for the future of EWSS and such arrangements will be outlined on Budget Day, 12 October 2021. Read the full press release here.
For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.
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