In this week’s Public Policy Bulletin, read about recently announced Government initiatives to support remote working in Ireland, a BearingPoint study which analyses 123 European banks and the recently released annual report on public debt in Ireland. We also cover Minister McConalogue and Northern Ireland’s Minister Lyons’ trip to Expo 2020 Dubai and a statement from Minister Lyons on the independent review of Invest Northern Ireland  Initiatives to support remote working announced by Minister Humphrey   This week, the Minister for Rural and Community Development, Heather Humphreys, announced a series of major initiatives to support Remote Working. Through the Connected Hubs 2022 Call, the Department of Rural and Community Development will provide €5 million to add additional capacity to the existing remote working infrastructure in Ireland by upgrading existing hubs and Broadband Connection Points (BCPs). €8.9 million has already been provided for 118 remote working projects across the country in 2021.  In May 2021, the National Connected Hubs network was launched with 60 hubs onboarded onto the connectedhubs.ie platform. There are now in excess of 200 hubs live on the connectedhubs.ie platform, with an aim to hit 400 hubs by 2025. The Connected Hubs mobile app has been launched to allow users to find their nearest hub facility and easily book a desk space using their mobile device.   Read the press release here.  Pandemic impact on European and Irish Banks   A BearingPoint study has found that Irish banks were hit harder than many of its European peers during the Covid-19 pandemic. The study looked at 123 European banks from 2013 to 2020 and found that Irish banks set aside significantly more capital for the impairment of loans during the pandemic (an increase of 1300 percent), when compared to their European counterparts (an increase of less than 120 percent).  In 2020, Bank of Ireland and AIB had impairment charges of €1.1 billion and €1.4 billion respectively due to Covid-19 concerns. Irish banks had a negative return of 6.3 percent in 2020, compared to a European average return on equity of 2%. 2020 cost income ratios for Irish banks averaged at 68.7 percent, higher than the European banks average of 64 percent and the optimum cost income ratio, which should be less than 55 percent.   Noel Crowley, the Financial Services Director at BearingPoint, shares his response to the report here.   Annual Report on Public Debt in Ireland 2021   The Minister for Finance, Paschal Donohoe released the fifth annual report on public debt this week. The report found that public debt increased by €33 billion during the two years of the Covid-19 pandemic, now approaching a quarter of a trillion euros. This is an estimated 106 percent of national income or €47,250 for every person in the country. These figures stood at 95 percent and €41,450 in 2019.  Minister Donohoe highlighted the major fiscal challenges that lie ahead, including a likely fall in corporation tax receipts, an aging population and the large fiscal costs that will be required to finance the journey to “net neutral”. In a press release issued by the Department of Finance, Minister Donohoe concludes “This is why we need to rebuild our fiscal buffers, including by steering the public finances to a more balanced path. We can do this while continuing to make significant capital investment, as outlined in the National Development Plan. This will help to lay the foundations for future growth while protecting against the future fiscal challenges that lay ahead of us.”   Read the full report from the Department of Finance here.     Dubai’s Expo 2020  Minister for Agriculture, Food and Marine, Charlie McConalogue opened a Board Bia celebration of Irish food at the Irish pavilion at Dubai’s Expo 2020, with the current year theme “Island of Inspiration” highlighted when he remarked “that spirit of inspiration and creativity reflected in the Irish food producers, large and small, who are innovating and finding routes to premium markets in the Gulf region”.  Northern Ireland’s Economy Minister Gordon Lyons also attended the event during his two-day visit program to the UAE. Speaking from the UK Pavilion at the Expo, under the UK’s theme of “Innovating for a shared future”, Lyons said “Today, Northern Ireland is centre stage at the world’s largest live international event. We are here to bring a flavour of Northern Ireland to the world and showcase our innovations within business, tourism, food and education to a global audience."  Invest Northern Ireland independent review  Northern Ireland’s Economy Minister Gordon Lyons made a statement to the NI Assembly this week in relation to his decision to commission an independent review of Invest Northern Ireland (Invest NI). He pointed out the fantastic track record Invest NI has in making Northern Ireland the most attractive location in the UK, outside of London, in respect of foreign direct investment.   The statement from Lyons can be read here.   Dame Rotha Johnston DBE and Ms Maureen O’Reilly have been appointed as panel members to work with the panel chair, Sir Michael Lyons for this independent review. The report of their findings is expected in September 2022.   Invest NI’s offers of financial assistance to companies beyond March 2020 is currently on pause, as they await clarification on their potential 2022/2023 Budget sign allocation from its parent Department for the Economy 

Welcome to this week’s Technical Roundup.  In developments in recent weeks, the Financial Reporting Council has issued January 2022 editions of UK and Ireland accounting standards. These editions reflect the amendments made since the previous editions were issued in 2018, as well as changes in Irish company law, resulting in a single up‑to‑date reference point for each standard; in the first International Accounting Standards Board podcast episode of 2022, IASB Chair Andreas Barckow and Vice-Chair Sue Lloyd join Executive Technical Director Nili Shah to discuss the main topics from the January 2022 International Accounting Standards Board (IASB) meeting. 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 (FRTC) has responded to the International Accounting Standards Board’s (IASB) request for information as part of the post-implementation review of IFRS 9. In its response, the FRTC highlighted the importance of providing guidance on how to treat financial assets with sustainability linked features which are beginning to emerge in practice. The FRTC has also responded to the IASB’s Exposure Draft Subsidiaries without Public Accountability : disclosures. This exposure draft sets the proposal for a new IFRS standard which would permit certain subsidiaries to apply reduced disclosure requirements when applying IFRS standards. Whilst the FRTC were supportive towards what the IASB are trying to achieve, they were not in agreement with the approach adopted. Rather than the standard setting out the required disclosures, the FRTC noted that a more appropriate approach would be to draft a list of disclosures that are not required when applying the standard. Such an approach would be similar to the approach set out under FRS 101 and would, in the opinion of the FRTC, be easier to compile and less costly for preparers. The FRC has issued January 2022 editions of UK and Ireland accounting standards. These editions reflect the amendments made since the previous editions were issued in 2018, as well as changes in Irish company law, resulting in a single up‑to‑date reference point for each standard. In the first IASB podcast episode of 2022, IASB Chair Andreas Barckow and Vice-Chair Sue Lloyd join Executive Technical Director Nili Shah to discuss the main topics from the January 2022 International Accounting Standards Board (IASB) meeting The International Accounting Standards Board (IASB) has issued its January 2022 update. Following the IASB's January 2022 meeting, the IASB work plan has been analysed to see what changes have resulted from the meetings and other developments since the December meeting. The IASB has also compiled a summary of its main news items in January 2022. The European Financial Reporting Advisory Group (EFRAG) has issued its January 2022 update. This summarises public technical discussions held and decisions taken during the month. EFRAG has asked for views on the Exposure Draft Non-current Liabilities with Covenants and Supplier Finance Arrangements. Questionnaires to facilitate this request are available to view on the EFRAG website and can be completed by 4 March 2022. EFRAG is seeking comments on their discussion paper “Better Information on Intangibles – Which is the best way to go?” Comments are requested by 30 June 2022. EFRAG has completed its due process regarding the initial application of IFRS 17 and IFRS 9- Comparative Information (amendment to IFRS 17) and has submitted its endorsement advice letter to the European Commission. As a result, EFRAG has also updated its Endorsement Status Report.` The UK Endorsement Board has published its Draft Comment Letter in response to IASB’s Exposure Draft - Supplier Finance Arrangements: Proposed amendments to IAS 7 and IFRS 7 and is seeking feedback on this by 4 March 2022. The IFRS Foundation, CDP and the Climate Disclosure Standards Board (CDSB) have completed the consolidation of the CDSB into the IFRS Foundation. Resources from the CDSB will transfer to the IFRS Foundation and provide intellectual property and technical assets which will support the International Sustainability Standards Board (ISSB). Auditing New research with Audit Committee Chairs reinforces the case for developing standards for Audit Committees. Independent research commissioned by the Financial Reporting Council which builds on similar research in 2020, reinforces the case for developing standards for Audit Committees to help promote a more consistent approach to audit quality. The research, conducted by YouGov, was based on in-depth interviews with Audit Committee Chairs (ACCs) discussing how they carry out their role. A link to the full research can be found here. Insolvency The Institute is hosting a free one hour webinar on 10 February on practical considerations for the small company administrative rescue process (SCARP). The process, how to prepare for it, what to look out for and key matters to be aware of when considering it will be discussed as well as exploring some practical issues including dealing with creditors and the pros and cons of a company entering the process. Fraud/Anti money laundering/Economic Crime Europol has recently issued its report “Cryptocurrencies: tracing the evolution of criminal finances”. It analyses the criminal use of cryptocurrencies, and the report contains core definitions, case examples, and details of the challenges authorities face in combating the illicit use of cryptocurrency. Also, in its press release Europol debunks some myths .It says that overall number and value of cryptocurrency transactions related to criminal activities still represent only a limited share of the criminal economy when compared to cash and other forms of transactions .It also states that cryptocurrencies are not anonymous and while privacy coins and a number of services and techniques may hinder law enforcement investigations, transactions are traceable. The UK Financial Conduct Authority recently published guidance on competency and capability for heads of compliance and money laundering reporting officers (MLROs) of firms authorised and registered by it. The FCA says it should help firms decide if an individual candidate is suitable. The guidance  is  based on FCA  experience of approved applications and gives details of what successful applicants had for example in the way of training and experience. The Treasury Committee of UK Parliament recently published a report on fraud, scams and economic crime. It has called for additional Government action to combat fraud and scammers. The report urges legislation against online fraudulent adverts and for the government to seriously consider whether online giants should reimburse those who fall victim to scams on their platforms. It makes recommendations such as appropriate resourcing and whether a single law enforcement agency would be more effective. Other Areas of Interest In recent days the Irish government launched a new national digital strategy, Harnessing Digital – The Digital Ireland Framework, to drive and enable the digital transition across the Irish economy and society. You can read more details and download the strategy from this page . The strategy was welcomed by regulators, the Broadcasting Authority of Ireland , Competition and Consumer Protection Commission (CCPC), Commission for Communications Regulation (ComReg) and the Data Protection Commission (DPC) . The UK government launched its Cyber Security Strategy this week. It sets out the government’s approach to building a cyber resilient public sector and to ensuring that core government functions are resilient to cyber-attack. Following a consultation last year, the Central Bank this week published its Guidance on the Use of Service Companies for Staffing Purposes in the Insurance Sector due to the potential of these staffing arrangements, if not effectively managed, to threaten the operational resilience of undertakings regulated by the Central Bank. The Guidance expects that where an undertaking uses such staffing arrangements, this should not impair the quality of its system of governance, unduly increase operational risk, impair the ability of the Central Bank to monitor compliance of the undertaking with its obligations, or undermine service to policyholders. This week the Central Bank also published its Regulatory Service Standards Performance Report for the second half of 2021. The document sets out the Central Bank’s performance against service standards that it has committed to in respect of (a) authorisation of investment funds and financial service providers, (b) processing of Pre-Approval Controlled Function Individual Questionnaire  applications and (c) contact management. There are 44 service standards against which the Central Bank sets performance targets. The report documents that during the period, there were 12 service standards which were not relevant and of the 32 which were, 27 of these were either met or exceeded. The Companies Registration Office (CRO) has announced that it will introduce mandatory online filing for 18 of its Companies Office forms from 1 March 2022. These include forms for winding up resolutions and  appointment of liquidators and receiver. Click here to see the list of affected forms. Any forms, which are mandatory online filings, received on or after 1 March 2022 will be returned for re-submission online. Users are advised to familiarise themselves with the CRO’s CORE system to avoid unnecessary delays.   The Department of Enterprise, Trade and Employment (DETE) recently  launched a Public Consultation on Reform and Modernisation of Legislation regarding Co-operative Societies. Work is nearing completion on proposed legislation to repeal the Industrial and Provident Societies Acts 1893-2021 and provide a modern and effective legislative framework suitable for the diverse range of organisations using the co-operative model in Ireland. This consultation outlines a number of issues and asks specific questions to assist the DETE prior to finalising legislative proposals. The DETE is also taking the opportunity to give stakeholders a general overview of the proposed legislation. It is seeking responses from interested parties by 25 February 2022.The press release regarding the consultation can be found here. The Institute is responding to this consultation and we welcome comments from members. Please use the form here to send us your views on this proposed reform.  Following relaxation of many public health measures, including the requirement on public health grounds, to work from home, the Tánaiste recently published the Transitional Protocol, a guidance document which was developed in consultation with business representative groups and unions. It sets out best practice for keeping the workplace safe and to help employers and their employees return to work safely. The DETE has recently published its latest newsletter .It contains information on a number of matters including the Transitional Protocol mentioned in the preceding paragraph and the publication of the Competition (Amendment) Bill 2022 which, if passed, will give  more powers to the competition authority to protect consumers. The European Commission is running its annual event EU Industry Days from 8 – 11 February 2022.You can register and join online. It is a four day event with one day casting a spotlight on the EU tourism ecosystem and other days holding discussions across industrial ecosystems on their green and digital transition, in support of strengthening the resilience of EU companies (including SMEs).It will also hold a special youth programme  focusing  on some of the most urgent concerns for young Europeans today: social equality, youth unemployment and precarious work, and the urgent call for sustainable and socially responsible business models. Details of the programme including the special youth programme on 10 February 2022 can be found here. Speakers include Ursula Von Der Leyen President of the European Commission and Maroš Šefčovič, Vice President. A podcast series is also available on the website where industry insiders, civil society representatives, academics, and many others have a say about the trends, challenges and  opportunities that the green, digital, and resilient transition brings for European industry.

Oireachtas Committee responds to the final report published by the Commission on Pensions In its response to the Report of the Commission on Pensions, the Oireachtas Joint Committee on Social Protection, Community and Rural Development and the Islands has recommended that Ireland’s State Pension age remain at 66 years. This rejects the proposal put forward by the Commission on Pensions last year that the qualifying age is increased from the current 66 years by three months every year from 2028, reaching 67 in 2031.  To fund this, the Committee recommends that the Commission on Welfare and Taxation examine potential changes to Employers’ PRSI contribution rates.  Among the 13 proposals put forward, the Committee also recommends banning the mandatory retirement age for both new and existing employment contracts. Chartered Accountants Ireland issued a statement following the response this week, welcoming the recommendation to leave the state pension age unchanged at 66 years, while recognising that the shortfall in funding the State Pension long-term needs to be addressed. The Institute said that asking employers to pay increased rates of PRSI cannot be a long-term solution and the fact that employers are already paying high salaries to compensate workers for high personal tax rates must be recognised. The Committee also recommended that funding auto-enrolment should not be prioritised over retaining the current State Pension age. Chartered Accountants Ireland however believes that reforms to enhance the sustainability of the State Pension cannot take place without parallel reforms to increase private pension coverage in Ireland to enable workers to avoid living their retirement in poverty.    Calls for coherent Government policy were also made to enable workers to adequately plan for their retirement. Bank of Ireland’s recent economic pulse survey indicates pay rises this year    According to the most recent Bank of Ireland economic pulse survey, 50 percent of firms are pricing in pay rises this year. 56 percent of people surveyed indicated that it is now easier to find or move jobs, with a third of firms reporting a struggle to fill open positions. 46 percent of those surveyed expect to see a 3 percent average increase in wages in the next year. According to Bank of Ireland’s chief economist Loretta O’Sullivan, “As businesses look to retain and attract staff, and workers find it easier to get or change jobs, upward pressure on pay is likely” with a shortage of workers helping to drive the pay increases. The survey also indicated that 77 percent expect houses prices to rise in the next 12 months, with 70 percent also expecting a rise in rent. The Economic Pulse is based on a series of monthly surveys of households and firms where they are asked for their views on a wide range of topics including the economy, hiring activities, business plans, personal spending and financial situations among others. Tánaiste intends to strengthen remote working laws   We highlighted the draft Bill to give employees the right to request remote working published by Tánaiste Leo Varadkar. The proposed legislation will set out a legal framework to apply for remote working, the reasons the request could be refused and outlines the process for appeals. The Tánaiste discussed the draft Bill with the Select Committee on Enterprise, Trade and Employment this week, indicating his plans to strengthen the legislation and his intention that “employers cannot just tick a box to say no”. The Tánaiste also reiterated that the Bill is in draft form and that “there can’t be an absolute right to remote working”. Chartered Accountants Ireland has written a letter to the Tánaiste to request clear and comprehensive guidance, including practical examples, to assist our members to implement the legislation when it becomes law. Read the Draft Scheme of the Right to Request Remote Working Bill 2022. Enhanced Illness Benefit (EIB) extended The Minister for Social Protection, Heather Humphreys TD, has secured Government approval to extend the EIB payments until the end of June 2022. Almost €230 million has been paid in EIB to date, supporting over 374,000 people. The €350 weekly payment is available to people diagnosed with Covid-19 or told to self-isolate. This is available to employees or self-employed people. For more information, and to apply, go to MyWelfare.ie. Northern Ireland Business Demography Statistics 2020 released Northern Ireland Statistics and Research Agency (NISRA) recently released the latest business demography results for Northern Ireland which looks at births, deaths and survival rates of Northern Ireland businesses by Industry and District Council Area. 6,375 businesses were born in 2020, a decrease of 3.8 percent on the previous year. 4,900 businesses closed during the year, a decrease of 9 percent from 2019. The number of businesses births was greater than the number of business deaths for all district council areas across Northern Ireland.   Retail saw an introduction of 780 businesses in 2020, a 47 percent increase on 2019 and the highest number of births for the sector since the series by industry began in 2009. Importance of Traineeships as part of economic recovery in Northern Ireland This week, Northern Ireland’s Economy Minister Gordon Lyons highlighted the importance of traineeships to enable economic recovery in the region stating that “developing the local skills base is a key priority for me and a cornerstone of the recovery”. As part of the Department for the Economy’s 10X Economic Vision, the goal is “to equip people with the skills they need for the constantly evolving jobs market and build on Northern Ireland’s successes on the global stage”. The £180 million NI Traineeship program, launched in September 2021 as part of the economic recovery package, intends to fund 20,000 Traineeship places over the next seven years.

The CCAB-I Insolvency Committee has today published Technical Alert 04/2021 Register of Beneficial Ownership of Companies and Industrial Provident Societies – Guidance for Insolvency Practitioners. This Technical Alert highlights the features of the Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies which are of particular importance to insolvency practitioners.  This guidance has been prepared on a practical basis and is intended to be of a practical nature.  This Technical Alert is available on our website.

Welcome to this week’s Technical Roundup.  In developments this week, over the recent months, the Institute of Chartered Accountants in England and Wales published a series of reviews of major standards looking at the differences between International Financial Reporting Standards and International Public Sector Accounting Standards and the suitability of each in public sector financial reporting. The fourth and final part of the series has now been released; EFRAG, Business Europe, and the IASB will host a joint webinar on 10 December 2021 on the IASB’s exposure draft 'Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19)'. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has published the exposure draft 'Supplier Finance Arrangements (Proposed amendments to IAS 7 and IFRS 7)' to enhance the transparency of supplier finance arrangements and their effects on a company’s liabilities and cash flows. The deadline for submitting comments is 28 March 2022. The IFRS Foundation has issued a monthly news summary for November 2021. EFRAG has completed its due process regarding amendments to IAS 12 and has submitted its Endorsement Advice Letter to the European Commission, recommending it’s endorsement. The Amendments revise IAS 12 to require entities not to apply the IAS 12 initial recognition exemption to transactions that, on initial recognition, give rise to equal and taxable temporary differences. The objective of the Amendments is to reduce the diversity that currently exists in practice. EFRAG, BusinessEurope, and the IASB will host a joint webinar on 10 December 2021 on the IASB’s exposure draft 'Disclosure Requirements in IFRS Standards—A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19)'. In Accountancy Europe’s recent podcast entitled “Sustainability will never do without Governments”, senior manager Paul Gisby discussed sustainability reporting standards for the public sector and where this might lead to in the future, including the potential role of the accountant. The European Banking Authority (EBA) has published a report summarising the findings arising from the monitoring activities on the IFRS 9 implementation by EU institutions. EBA notes significant efforts in IFRS 9 implementation by EU institutions, but cautions on some of the observed accounting practices, especially in the context of the COVID-19 pandemic. IFAC’s Professional Accountants in Business (PAIB) Advisory Group has compiled insights on how accountants are contributing to value creation and sustainability in their organizations in both the private and public sectors in a new report, The Role of Accountants in Mainstreaming Sustainability. A study published as part of the working paper series of the European Banking Institute (EBI) looks at COVID-19 disclosures in half-year and year-end financial statements 2020 of European banks. ESMA, EBA, IOSCO and IASB communicated in the second quarter of 2020 their expectations on disclosure regarding the pandemic’s impact in order to meet the objective of the IFRS to provide decision-useful information to stakeholders. Over the recent months, the Institute of Chartered Accountants in England and Wales (ICAEW) published a series of reviews of major standards looking at the differences between International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASB), and the suitability of each in public sector financial reporting. The fourth and final part of the series has now been released. Auditing The FRC has published a Collection of Perspectives, following the FRC Culture Conference held in June 2021 that brought together a wide range of international experts to explore the important link between culture and high-quality audit.     The Collection of Perspectives includes contributions from academics, audit firms, directors, regulators, culture change experts and other parties within the audit ecosystem.   The publication serves to highlight consensus between contributors, as well as thoughts on best practice to encourage learning and continuous improvement in developing a culture to improve audit quality.   The full Collection of Perspectives is available here. A summary from the FRC’s Culture Conference is available here. FRC encouraged by reporting by applicants on Stewardship FRC has published ‘Effective Stewardship Reporting: Examples from 2021 and expectations for 2022’ which analyses reports from the first signatories to the revised Code published in September 2021. There continues to be high quality of disclosures in the areas of governance, resourcing, and the integration of stewardship and ESG factors with investment. However, there is still room for improvement in explaining how they manage stewardship-related conflicts of interest, how managers review and assure their stewardship activities, and how they monitor and hold to account service providers operating on their behalf. Insolvency The Irish network of The International Women’s Insolvency & Restructuring Confederation (IWIRC) is hosting its first webinar ‘A look back on key restructuring and insolvency developments in 2021’ on Thursday, 9 December. Anti-Money laundering, Fraud and Cybercrime The Institute of International Finance and Deloitte have recently published a White Paper which highlights four focus areas where continued reform can build on progress already underway globally to help improve the effectiveness of the anti-financial crime framework: 1. the use of financial intelligence; 2. risk prioritization; 3. technology and innovation; and 4. international cooperation and capacity building. This paper also highlights important instances of ongoing systemic improvements, how similar efforts can be deployed across jurisdictions, and how policymakers could prioritize international cooperation and coherence. The paper is entitled “The effectiveness of financial crime risk management -reform and next steps on a global basis”. Read also Grant Thornton’s recently available report on The Economic Cost of Cybercrime Ireland 2021.  The Financial Action Task Force has recently published its Annual Report 2020-2021   . Read about FATF’s achievements under the first year of its German Presidency including the publication of two reports analysing the opportunities and challenges of new technologies, a report into money laundering from environmental crime, which concluded that most countries are failing to assess this area as part of national or money laundering risk assessments and a report on ethnically or racially motivated terrorist financing. Members may be interested in a webinar FATF is holding on Proliferation Financing Risk Assessment and Mitigation on 16th December. Proliferation Financing is financing for the malicious use of chemical, biological, radiological and nuclear materials and weapons. Other Areas of Interest The Pensions Authority has previously advised that from 1 December 2021, trustees must notify the Authority when they enter an outsourcing arrangement for the provision of the internal audit and risk management key functions. Trustees who have entered these arrangements since 22 April 2021 must also notify the Authority. The Authority has now issued instructions on how to notify  it of the arrangements. The Pensions Authority has also recently issued an information note on various regulations signed by the Minister for Social Protection on 25 November 2021. The regulations make amendments to existing regulations under the Pensions Act 1990, as amended, in relation to disclosure, scheme registration, trustee investment qualifications, funding standard, cross-border requirements, and bulk transfers; and revoke and replace the existing investment-related regulations under that Act. Click here for the link to the website which gives further information and links to the regulations. The Central Bank recently issued its Cross Industry Guidance on Operational Resilience. The pandemic has put firms’ operational resilience to the test and highlighted the importance of being more operationally resilient. The guide applies to regulated financial service providers and communicates how to prepare for, respond to, recover and learn from an operational disruption that affects the delivery of critical or important business services. It is also to communicate the Central Bank’s expectations in this regard. The Central Bank recently published its second financial stability review of 2021 which outlines key risks facing the financial system and the Central Bank’s assessment of the resilience of the economy and financial system to adverse shocks. Findings show that economic recovery has continued over the past six months, but more medium-term vulnerabilities have been building up. You can read full details of the review here  and the Central Bank Governor’s remarks on the publication here. HMRC recently issued its Modern slavery statement. This statement details the work HMRC is currently undertaking to eliminate modern slavery in supply chains and to ensure modern slavery risks are identified and managed. The Government has recently agreed that the Dept. for Public Expenditure and Reform undertakes a review of the statutory framework for ethics in public life before it brings forward proposals for legislative reform in 2022.The Dept. has issued a consultation document entitled “Reform and Consolidation of Ireland’s Statutory Framework for Ethics in Public Life” which gives background to the current framework and a proposed policy approach. The Dept is seeking views on a number of questions in the consultation document .Please follow the link to the consultation and document. Submissions can be made up to 5pm on Thursday 23rd of December 2021. A short informative video is now available to view from the A &L Goodbody Corporate Crime Regulation Summit 2021 .Here Ian Drennan of the ODCE talks to Kenan Furlong of ALG  about the ODCE’s work and the imminent establishment of the Corporate Enforcement  Authority which is expected to be established by year end .Ian Drennan talks about the resourcing increase for the new Authority, new powers (which will come on stream over time ) and the important part that technology plays in their work. The European Data Protection Supervisor recently issued its monthly newsletter .It announces its proposed summer 2022 Data Protection conference, “the future of data protection: effective enforcement in the digital world”, it highlights a report on “Biometric And Behavioural Mass Surveillance In EU Member States”  and it comments on a European Digital Identity Wallet. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Dave Riordan ACA, Recruitment Specialist & Career Coach, Chartered Accountants Ireland Careers Team, writes: Recruitment into practices, large and small, is a challenge in the current climate. We know this. So what can we do to make our recruitment processes easier and more effective? Here are some tips that I deem essential to attracting and onboarding suitable additions to your team: The senior management team should incorporate into their Practice Strategy some core objectives and KPI’s on the firm’s candidate attraction (and retention) approach. This needs to be a permanent fixture in quarterly management meetings for the firm and constantly updated. Conduct one comprehensive, all encompassing, interview that allows you make a quick decision about the candidate – no second interview needed. This way you have a time advantage and first mover advantage versus competing practices. As well as traditional jobs boards, use social media channels to get the word out LinkedIn, Instagram, Facebook, Twitter etc. Align your message across each and post simultaneously to each platform for full reach to your audience on the same day. Develop your Practice Brand as an employer of choice in the practice-sphere. This will mean differentiating your firm to increase attractiveness. Train your own – take the longer term view and hire trainees to grow them in your culture. Hire Part-time/ flexible workers – the world is shifting towards the ‘gig-economy’ mindset, so why not employ FCAs who are seeking part-time roles? This way, you can benefit from the vast experience they can bring to the role, and they benefit too as they can balance their role with wider family needs. Many members are now very focused on work-life balance and, even if they are nearing retirement, they could be in a position to contribute some of their best years to your firm. Many FCA’s with 30 years+ experience would be delighted to contribute a wealth of experience to a role in practice for a few days a week, and it doesn’t necessarily need to be at a senior level. Flexible core hours or work to facilitate school drops and pickups are another obvious element in this. Consider ‘Returners’ (members who have been off work travelling or developing home life for a few years). They may often be a ‘little’ flexible on salary to get a foot back on the ladder that then enables them to restart their career. Returners not only have a wealth of experience to bring to a role, but they also have maturity and life experience that can be hugely beneficial. If it’s hard to find the Audit and Tax people you are seeking, why not start to build a branded presence on LinkedIn. Raise the profile of your firm so that ACA’s are aware of it and how good your practice is to work for from an early stage in their career. This will ensure you tap into a pool of passive candidates and attract interest over a period of time. Offer different elements in your remuneration package: e.g. gym membership, social Fridays each month, pension, commission structure, phone paid etc. Often a well run internal candidate-referral reward scheme can be a highly effective way of incentivising current employees to bring in ACA’s that they feel would be a fit for your firm. Done well, this can extend your reach into the market for candidates significantly and also help maintain a consistent culture. Use a highly regarded recruitment agency. Partnering with an agency closely can be very advantageous in the market if you do it right! Some tips on this: Meet the consultant you are working with; Have a regular scheduled update call (e.g. weekly); Accept speculative CVs from the agent; Be flexible on the fee rate. If you get an exceptional candidate they can be worth it and remember it’s contingency based, so no fee is applicable if the process is incomplete; Keep updating the agent about the news in your firm; Offer to work exclusively with the recruitment firm, but ask what steps they will go through to find/headhunt the right candidate for you; Make sure you have created an excellent job spec and offer to assist with the advert text; Recruiter fees can appear high on the face of it, but a good recruiter can allow you get on with the day job of billing clients while they streamline the candidate selection process saving you time and money; Make the partnership a positive one where you share background (but always confidential) information with the recruiter, ensuring you are on the same page & wavelength regarding the person and role; If you trust your recruiter to know what you are looking for and he/she recommends a candidate that does not look like an obvious fit on paper, give the recruiter the benefit and trust their judgement and meet them. I would also be generally open minded on applications. For example, if a candidate is not a right fit for your current active role, consider whether they might be suited to your firm in a different role where they will add value, or perhaps consider them as a short-term contract addition to the team if that could alleviate a work backlog for you. Candidates in the practice market in 2021/22 are savvy and have built shortlists of their preferred employers that match their career pathway. You need to be on their shortlists as an employer of choice. As an interviewer, be clear and well-practiced in the selling points and differentiators of your firm and communicate them warmly during the meeting. Refine your interview techniques and get honest feedback on them to ensure the interview experience for the candidate is a positive professional reflection of the organisation. As an additional guide I can highly recommend a Chartered Accountants publication by Mary E Collins – “Recruiting Talented People”if you are looking for additional detail. I always recommend looking for opportunities each quarter/year to stay close to the Institute, and so partnering with the Careers Team in Chartered Accountants Ireland for your recruitment needs is a good idea to ensure you are attuned to the market, and first in line for ACA candidates who prefer to tentatively explore a practice career move with the confidentiality and assurance of their own Institute. If you would like to speak to the Chartered Accountants Ireland Careers Team, please email us at careers@charteredaccountants.ie.  

Julia Rowan answers your management, leadership, and team development questions. My team works hard and to a high standard, but a couple of people on my team turn every team meeting into a moan about the company. I’m worried that this will affect new team members. The company is a pretty decent employer. What can I do? A. It seems that there are two issues here. First, dealing with the moaning (I will use your word here) and second, making sure that it does not affect new team members. Let’s deal with them separately. When team members moan, our natural tendency can be to jump in, explain, defend, etc. And sometimes that may be the right thing to do, but there is often a “yes but” no-win game being played. There are a couple of things you could do. You could just listen, thank the team member and move on without comment. Or you could listen and ask, “who do you need to talk to about this?” or “who needs to know this?” Or you could have a one-to-one with the moaning team member and try to get under the issue. Only do this if you can be genuinely curious. You could ask questions like “how does that affect how you show up?” and “how can I support you here?” Many people work hard and moan hard, in which case I would praise them for working hard despite their misgivings. If you have a good conversation, you could share your concern that their negativity affects new team members. Loud complainers can create a strong gravitational pull, and you are right to be concerned about their impact on new team members. Make sure to spend plenty of one-to-one time with the new team members, opening up a two-way dialogue, establishing a good feedback relationship, meeting with them regularly, talking about their development, etc. The manager-employee relationship is the most important relationship at work – make sure it’s a good one. I feel my team regressed in the last work from home period. Now we’re working from home again, what can I do to hold the team together? A. Leadership is so important when people are working remotely, as everything is moving online. Five-minute conversations in the canteen often turn into 30-minute Zoom conversations. And you only see your own team and key stakeholders, with none of that easy connection with ‘corridor friends’. Be proactive here. Bring the team together and take some time to review the learning from the last lockdown (what worked well, what worked less well) and invite them to create a set of guidelines (sometimes called a team charter or ground rules) to help them navigate this period. Make this a live document. Check whether it is working and ask, “what else can we do to make this easier for everyone?” You can’t fix this on your own; step back so that the team can lean in. Create a ‘social only’ meeting once a week and get it into people’s diaries. If your team is large, put people into small breakout rooms of two to four people for 15 minutes to give time for connection. If budget permits, send a small gift from time to time. One-to-one check-ins are critical too. Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Cormac Lucey explains the three reasons why Ireland’s property market does not have ‘bubble’ status this time around. I recently received “a private request” from a junior work colleague. She was wondering whether she and her partner should buy a residential property even though she was worried that “the market is overheating, and it is not a good idea to buy anything right now”. Has Irish property returned to bubble status? I’m afraid that I have some form on this question. Back in April 2005, when I was working as political advisor to then Justice Minister Michael McDowell, I had used a pseudonym to write in Magill magazine that “We risk maxing out on debt and thereby making ourselves vulnerable to any short-term economic set-back. The closest parallel may prove to be the Japanese economy. They too experienced a growth miracle built on a credit bubble induced by politically-determined interest rates. Their bubble was pricked in 1991. If their experience is anything to go by, the bursting of the Irish bubble would be a nightmare. The economy would prove impervious to monetary and fiscal stimulus, as individuals and corporations sought to curtail spending in order to reduce their bank borrowings. A downward spiral of asset prices, forced liquidations and further falls in asset prices could result. Growth would prove elusive and the financial sector would be in permanent crisis.” Sadly, I was right even if it took another few years for that to become clear. But there are three strong reasons why I don’t believe that Irish residential property is in a bubble today. First, there has been little or no credit growth pushing Irish property prices up. Irish residential property prices peaked in April 2007 and then collapsed to just 46% of those levels (in June 2012) only to recover to 93% of their peak value in September. But lending for house purchases has dropped from its bubble era peak without ever really rebounding. It peaked at €125 billion in March 2008. Since then, it has fallen by over 40%. As of June, it was down at €73 billion, a miserable 0.4% above the minimum reached in March 2020. If financial bubbles are generally credit-fuelled, how can Irish residential property currently be in a bubble after experiencing only deleveraging over the last decade and a half or so? Second, it is cheaper today to buy and own a house than to rent it. A key test of whether we are in a bubble or not is the relationship between the annual expense of renting a house and the burden of servicing a mortgage on that same house. It was far cheaper to rent from 2000 to 2007 as the property bubble reached its climax. By 2006, mortgage rates were about 7% while rent yields (annual rental income divided by property value) were only half that. That meant that a fully debt-funded interest-only buy-to-let landlord was receiving only half of their interest expense in rental income. What is the position today concerning rent yields and mortgage rates? According to CBRE’s Q4 2020 Marketview report, prime residential rental yields in Dublin were 3.75% late last year. Recent Central Bank figures show the average mortgage rate on a new mortgage was 2.72% in September, down marginally compared to 12 months earlier. Even though we face the second-highest mortgage rates in the Eurozone, it is still cheaper to buy than to rent. This is the second strong argument that we are not currently experiencing a residential property bubble. The third clinching argument that we’re not in a new property bubble is behavioural. Since I got vaccinated last summer and the pandemic restrictions eased, I have attended several dinner parties in south County Dublin. In sharp contrast to 2005-2007, not once did property prices feature as a topic of discussion. This indicates the absence of a popular property mania today, such as the one we experienced at the tail-end of the bubble. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland.

Mount Charles is an innovator developing new products, services and brands that support some of the biggest and best-known businesses, sporting venues, educational facilities, and healthcare organisations across the island of Ireland. Mount Charles Group, Ireland’s largest independently owned catering and support services provider, was founded by Trevor Annon in 1988, and has since established itself as the leader in contract and retail catering, cleaning, vending, security services and events. The company currently employs 2,500 team members, services over 400 clients across the UK and Ireland, and works with companies as diverse as Tesco Ireland, Down Royal Racecourse, Belfast International Airport, Ulster Rugby, ICC Belfast, RTÉ, Griffith College, Maynooth University, Ordinance Survey Ireland, and The Abbey Theatre. “The one big advantage we have is that the company is family-owned,” says Gavin Annon, Sales and Marketing Director at Mount Charles. “We can make decisions quickly; we are adaptable and flexible and we can take risks. We are big enough to cope and small enough to care, so we can compete against the big multinationals. Time and time again, we are seeing new clients come to us because we have that ability to think outside the box and do things more creatively. We can take a chance and go the extra mile.” One of the key offerings Mount Charles can offer to Irish CFOs, says Annon, is the ability to offer bespoke bundled services. “The Mount Charles motto is to work with clients to deliver sustainable long-term success together. This goes beyond the traditional partnership approach and the aim is to create opportunities and benefits for both parties by sharing risk and reward. We recognise the benefits of bundled services for organisations in terms of reduced management, labour and administration time,” he says. “The bundled service approach has to make sense for everybody,” says Annon. “We have to have sustainable long-term success together with our clients. From a CFO perspective, the benefit of having one provider is that we can offer economies of scale and we can reduce the moving parts of a business.” Mount Charles also understands the principle that one size does not fit all, says Annon. “We are very focused on our clients’ core service lines, and we work with them to design service solutions that provide flexibility to a changing landscape and best value for money, while not compromising on quality. We have both service- and sector-specific expertise within the company, which enables us to build bespoke bundled services around the needs of each client. Our internal processes are lean and efficient, so we avoid the administration and overhead costs some bigger companies have in their operating models.” Annon says there are two models of tailored packages in the marketplace. “A tailored package from a multinational will tell you what you are getting. A tailored package from Mount Charles will give you what you want. We learn as much as we can about our clients, their cultures, their values, what makes them tick as a business, and what their expectations are from Mount Charles. We are a problem-solving company.” The COVID-19 pandemic has changed some of the ways Mount Charles operates, says Annon, particularly in terms of communications with team members and clients working from home. “During the pandemic, we adapted our commercial models with clients to protect our financial position and we worked with them to adapt service delivery on a site-by-site basis. In some cases, this meant closing units entirely, operating at a reduced capacity or, in the case of key sectors, continuing with business as usual,” he says. Annon says Mount Charles is also adapting to the hybrid working environment, with staff working from home two or three days per week and in the office two or three days per week. “This is likely to be the new working world for the future, so we will adapt our service offering to reflect this. This will once again mean working in partnership with our clients to provide a service tailored to their daily demographics. It will also mean re-engineering commercial models, so they remain viable for both clients and Mount Charles. Within this landscape, clients are working in partnership with Mount Charles on an agreed pathway to growth, allowing us to offer a firm commitment to seek a successful outcome for both parties.” To support the new hybrid working model, Mount Charles has also introduced unattended retail units (micro-markets), which provide a catering service 24x7 aligned to the reduced numbers on-site. By employing digital and robotic technology, Mount Charles has also adapted and tailored its offering to provide innovative, personalised, and dynamic services. “In 2019, the company embarked on a three-year technology transformation programme to improve and enhance the resources and capabilities we needed to achieve our strategic goals. Good progress was made up to March 2020 when the COVID-19 pandemic hit. As a result of the changes to working practices, we accelerated the programme and delivered all new systems in a period of 15 months rather than the three-year target. The need to communicate with both clients and team members during this difficult time was a driving force behind the accelerated programme,” he says. Annon says technology has changed many areas in the business such as financial, data collection, workforce management, sales and promotion, management reporting, procurement, and customer feedback. “It has increased operational effectiveness and client engagement. Information is now available in real-time, allowing us to monitor trends, react quickly to a changing landscape, and provide better management information to clients via an online portal. A further benefit has been towards our sustainability goals as all reporting is now paperless. In addition, we have introduced robotic cleaning machines to certain sites to improve productivity and reduce costs.” Annon believes that as the economy recovers, there are major opportunities for Mount Charles to grow throughout the island of Ireland. Mount Charles retrained key staff during COVID-19 as it realised the importance of retaining staff. Some staff took career breaks but are now returning to Mount Charles as the company re-engages with clients who are rebuilding their businesses. “Our vision within Mount Charles is to achieve long-term, sustainable success and we will continue on the path to developing and reinforcing our place within the industry as an innovative, forward-thinking, high-quality service provider. Our objective is to achieve significant organic growth, increasing our team, capability, and customer reach. In our approach to this growth, we will deploy lean processes, implement market-leading technology and equipment, and embark on a process of continuous improvement of our services and processes. As such, our vision is to pass on our innovations, cost-savings, efficiencies, and technological advances to both our new and existing customers,” he says.

A successful COVID-19 vaccine roll-out, a growing economy and shifting priorities – 2021 may not have been the year we expected, but it has definitely delivered change and opportunity. Four members review the challenges they overcame, the surprises they faced and their hopes for the future.  Thady Duggan Senior Manager of CFO & Enterprise Value in Accenture At the beginning of 2021, I was expecting the impact of the pandemic to diminish faster than it did. Given the success of working from home and the fact that we proved, by and large, that many of us can do our job from home, I did not think things would return exactly to the way they were, but I did expect to be in our offices and our client offices more often. The biggest challenge, however, was home schooling. My sister is a teacher and I used to tease her about her holidays – she deserves them! However, professionally, it was continuing to work remotely. We have great collaboration tools and have become smooth at remote workshop facilitation, but there is something to be said for the personal touch. Conversely, because I was working from home, I was able to work on some global projects that I might not otherwise have had the opportunity to do. Under normal circumstances, a portion of my work could be in the UK or, to a lesser degree, Europe, but this year I was able to work with our US team on one of the world’s largest M&A deals. In 2021, I have been pleasantly surprised at how quickly we have galvanised around sustainability and climate. Work was clearly being done over previous years but there seems to be momentum, certainly from individuals and businesses, around these topics that were not there previously. I am also probably a little surprised that the rate of change we saw in the second half of 2020 has not slackened.  After the last year, I take more joy from smaller things and focus on the benefits small actions can have. I have probably done less socially over the past 12 months, but I try to enjoy each activity more. I hope COVID-19 peters out into just being like flu season, and we get back to having face-to-face client engagements again. Stephen Prendiville Head of Sustainability at EY I really didn’t know what to expect of 2021. For a while it was hard to see beyond the next week, not to mind the coming year. But when EY globally stepped out at Davos early in the year and committed to being net-zero in line with science-based targets for 2025, I knew the year was going to be dominated by the pursuit of that commitment. Over the course of 2021, we also became carbon negative, offsetting and removing more carbon than we emit.  On a personal level, it was a year of change. My family and I moved closer to extended family in Donegal and I took on the role of Head of Sustainability. Taking on the role came with a dual purpose: pursuing and supporting our internal sustainability goals at EY, but also structuring our teams to respond to the ever-increasing and challenging focus on the broad concept of sustainability and decarbonisation.  A professional highlight for me this year was representing EY and Irish business at COP26. While the climate diplomacy of COP can be difficult to appreciate, in the wings I had the opportunity to meet people at the cutting edge of technology and business that really do speak to the vastness of our new economic prospects. Prior to COP26, I would have considered that Irish business had a lot of common ground with the Irish Government. What I now see is that both the Irish Government and Irish business have more in common with the climate activist compared to our peers. Ireland can be a great disruptor. When we speak, people listen. We need to use that power not only to help the planet, but also to position ourselves in the new forthcoming global economy. In 2022, we need more dialogue. We need to get deeper on climate action. With the carbon budgets now in place, and the Climate Action Plan 2021 setting a sense of tone of direction, I think 2022 will nurture a great national dialogue and step-change in action for Irish business in particular.  Chalene Gallagher Regulatory Data Senior Associate at the Federal Reserve Bank of New York With everything that happened in the United States last year that served to highlight the inequities faced by minority groups throughout US history, it felt even more important for me to do more in the diversity, equity and inclusion (DE&I) space. The murders of Ahmaud Arbery, George Floyd, Breonna Taylor and too many others felt personal to me. Although I did not grow up in the US, as a black woman, the situations that led to their deaths could just as easily happen to me, a member of my family, or a friend.    The effects of the pandemic also served to compound disparities, as the loss of life and livelihood was felt most by communities of colour and by women who were the predominant employees working in the most impacted industries and who now had to take on more care-giving roles. Although the US and global economies are in recovery mode, it is by no means equitable, creating a K shaped recovery that further serves to highlight the struggles faced by minority groups.    My perspective really changed during the year in that instead of focusing on the feelings of frustration felt in 2020, in 2021, I chose to focus on action. Although I had been balancing my day role as a Regulatory Data Specialist with supporting people and culture-related efforts within the Bank, I personally felt the need to do more. So, I worked with my manager at the start of the year when I became the Vice President of the Women’s Employee Resource Network to intentionally split my time between regulatory reporting analysis and DE&I. Raising awareness, having tough conversations and trying to meet people where they are on their DE&I journey to help move the needle has been a challenge and an emotional investment. But is has been worth it.   Although there is still a lot of work to be done, I feel like we’re moving in the right direction.  For 2022, I hope we can continue to keep these topics at the forefront of the conversations we have in public and behind closed doors so that we can keep the momentum going and make real, tangible and sustainable change.  Sinead Fitzmaurice CEO of TransferMate Global Payments The COVID era has applied pressure to companies’ capital and cash flows, but those who experienced a surge in demand needed immediate information on cash flow and supply chain aspects. As we entered 2021, I expected to see a rise in demand from CFOs for the modernisation of payments infrastructure via digital platforms, and that theme has indeed dominated 2021.   The challenge is always the same: it’s about striking the right balance between personal and professional lives. They are both joined at the hip, like it or not, and both can be stressful in their own way. Striking the right balance is dependent on the talent you surround yourself with, and I am honoured to work with such a talented team at TransferMate who help us achieve our corporate goals daily.  I am always surprised at the resilience of the human spirit and our adaptability in the face of adversity and change. This has been tested to the extreme over the past 20 months in our personal and professional lives. We have a philosophy at TransferMate: “it is our people who make us who we are”. I can honestly say that I am inspired every day by our teams. They consistently rise to any challenge and deliver with utmost professionalism time and time again, regardless of the circumstances. The events of the past 12 months (20 months, actually) have been dominated by COVID-19 and for most of us, our lives have been put ‘on hold’. Yes, we have carried on as best we can within tight constraints, but we still have never really felt completely free. If nothing else, I have come to appreciate the freedoms we had taken for granted – the freedom to interact with people the way I want to, the freedom to travel, etc. In 2022, I hope we emerge from the pandemic for the better; we never forget the sacrifices that people have made as we wrestled with defeating it. I hope we learn not to be complacent about the possibilities of new threats rising and be prepared to defend ourselves when they do. On a professional level, 2022 promises to be a breakout year for my organisation. My goal will be to execute the plan flawlessly and blow through every milestone along that journey to the end of the year for everyone at the company.

Despite persistent and difficult challenges, Dawn McLaughlin is bullish on the north-west’s prospects for 2022 and beyond. This time of year is often a natural time to reflect and contemplate what has happened over the past 12 months. 2021, for all its challenges and difficulties, has been a greater whirlwind than the preceding year in many ways. While still profoundly challenging, businesses have got to grips with issues like the pandemic and the Northern Ireland Protocol, adapting to the challenges before them and seeking new ways of working to meet their customer needs and obligations. I have witnessed the hardship and listened to stories of decimation and uncertainty. But I have also been heartened by how businesses reacted to the crisis, putting their people before themselves. As we look towards 2022 and consider all that it may bring, it is important to look at the challenges we have faced, what we have achieved, how we have progressed, and what still needs to be done. For the north-west, it has been a year of optimism and positivity as well as change and progression. February saw the heads of terms signed off on the £250 million Derry and Strabane City Deal, an investment package that will see 7,000 jobs created over the next decade and an extra £210 million in GVA (gross value added) generated in our regional economy annually. It is difficult to overstate the transformative potential this deal could have for our region – a part of the island that has historically been underfunded, underdeveloped, and under-prioritised. If we get this right, there is an opportunity to carve out the north-west as a leading location in Western Europe for technology, health and life sciences, diagnostics, artificial intelligence, and other emerging industries that will become increasingly important to the global economy over the next decade. It has been a joy to finally see future doctors and consultants training in the city, with the opening of Derry’s new School of Medicine in September. The further expansion of Ulster University’s Magee campus is something that City partners are committed to making a reality, and we will continue to work collaboratively towards this goal. We have welcomed new Executive ministers this year, new MLAs in Foyle, and new party leaders. Ahead of the next Assembly election in Spring 2022, we have been working hard to get our message out there and tell our local candidates precisely what they must support to see our region flourish and prosper. We hope that issues like our regional connectivity and infrastructure, the expansion of our local university, job creation, attracting new investment, and skills development will be front and centre for our elected representatives in May. Specific issues still linger as we look ahead to 2022. Continuing disagreement over the Northern Ireland Protocol does no one any favours, especially businesses. Companies crave certainty, and they thrive when things are stable. While the Protocol is by no means perfect and difficulties are still to be ironed out, these are not insurmountable. Both sides can come to a positive conclusion through committed dialogue, and Northern Ireland can begin to take serious advantage of access to both the UK and EU markets. With growing inflation, a squeezed labour market, and rising costs of materials, services, and utilities, businesses face persisting challenges as we go into the New Year. However, I have spoken regularly about my optimism for the north-west throughout the past 12 months. This optimism has not abated, and I still believe 2022 will be a year of opportunity and prosperity for our region. Dawn McLaughlin FCA is Founder of Dawn McLaughlin & Co. Chartered Accountants  and President of Londonderry Chamber of Commerce.

clockwork, a new software platform, is helping accounting firms access talent as and when they need it. As with so many breakthroughs, the development of the clockwork freelance management platform arose from a problem experienced by its creator. “Back in 2018, we were a two-partner firm with 12 staff and we found it very difficult to recruit senior staff,” explains Greg Murphy, a partner with Corvidae, the accounting firm responsible for the development of clockwork. The trigger for the development of the platform was the departure of a senior staff member, who decided to move to London to pursue his career. “We found it very difficult to replace him,” says Murphy. “The quality just wasn’t there and we found ourselves competing with the Big 4 for people, which made it too expensive. We tried outsourcing to India, but the quality wasn’t there either. We then decided to use local freelancers and found them very good. Quite frankly, we were amazed at the quality of people who were available to us. Accounting freelancers are highly skilled professionals looking for long-term, profitable relationships with quality accounting firms.” That was quite a shift for an accounting firm. “Freelancers weren’t really used in the accounting sector up until then,” Murphy points out. “It is well established in the ICT industry and sectors like media and entertainment, but accounting firms hadn’t embraced it. We figured if we were having issues with recruiting talent, other firms must have them as well.” What was needed was a platform that could help firms access freelance talent, manage their work, organise payment and so on. “Businesses all over the world use freelance platforms to hire temporary workers for job roles and projects that do not require permanent employment,” he says. “clockwork is the only freelance platform designed for accountants by accountants. clockwork allows accounting freelancers to create a profile, display their work portfolio, and chat with firms. Firms can search a directory of freelancers based on experience, skills, and related criteria. All freelancers on clockwork are vetted and taken through a verification process.” clockwork addresses all the issues that can arise when using freelance talent. “If a firm has a project – year-end accounts, for example – they post it as a job on the platform,” says Murphy. “The platform is pre-populated with default data for different jobs to make it quick and easy to post. The firm specifies the work required and sets the price. No client names are divulged, nor are any other potentially sensitive details or information that could identify the client. The freelancer sees the post and the price, and if they are interested, they can apply for the work. At that point, the firm can view the freelancer’s CV and skills and qualifications before hiring them for the work.” Once that process is complete, the firm can transfer documents and other materials to the freelancer through the clockwork platform. The freelancer goes through the various tasks set by the firm, and the platform keeps track of progress all the way through. Once the work is complete, payment is facilitated through the platform. The benefits are clear, according to Murphy. “Firms can flex their workforce up and down as and when they need it. That reduces cost and improves profitability. There is also a natural cost advantage. Firms are paying for projects completed rather than time. It’s a fixed fee for tasks and projects, and it’s in everyone’s interest to get them done as quickly as possible and to the highest standard. It also means that firms can take on work they might otherwise have had to turn down.” And then there are the productivity gains. “The other thing that has come up, and not just in our firm, is that freelancers can be a lot more efficient and productive than people working full-time in an office environment. We saw increases in productivity among remote workers in many sectors during the lockdown, and this is certainly the case with freelance accounting professionals.” The benefits extend to the freelancers as well. “clockwork offers freelancers what they are looking for. They might want to work this week but not next week. It’s a lifestyle choice. They might be semi-retired people who are very highly qualified and experienced. There is also a younger cohort that might want to supplement their income. And then some people might have left the full-time workforce to care for families, who are also highly qualified but not available to go back to the workplace and do 60 or 70 hours a week. They are not interested in that sort of work. The clockwork platform allows them to engage with firms and work as and when they wish.” In development since 2018, clockwork has been in service with Corvidae since 2020 and was launched on the market in April 2021. The timing could hardly have been better. “Using freelancers requires a bit of a mindset shift for accounting firms, but in many ways, it’s not as great a shift as the move to remote working during the COVID-19 lockdowns. People are now used to securely transferring data online and managing virtual teams. The remote work revolution is already over, and hybrid has won. The next major shift will see accounting firms move towards a more productive, profitable and agile model that uses a smaller core team of full-time employees supported by a team of on-demand freelancers and outsourced partner firms. That is the shift that clockwork is facilitating.” The market response has been very positive. “It has been tremendous, and we have 20 firms signed up to the platform already,” says Murphy. “Close to 200 tasks per week are being processed. That’s extremely good in a very traditional industry. And interest is growing as firms see others benefiting from it. Our next target in the New Year is the UK market, and if all goes to plan, we will launch in Australia at the end of 2022. We are also looking at the potential for a funding round in the New Year as we gear up for international expansion.”