Insights

When designing a fit-for-purpose governance model, trust and transparency are the keys to success. Strong governance practices must permeate the culture of the organisation, and employees at all levels should play a role in a executing a lived governance model that helps the company thrive.

The Individual Accountability Framework (IAF) impacts all Regulated Financial Services Providers (RFSPs) and individuals who perform controlled functions (CFs) on their behalf. Certain RFSPs (including most credit institutions, insurance firms and MiFID firms) are additionally in scope for the Senior Executive Accountability Regime (SEAR).

Businesses often find it difficult to embrace iterative ways of working without losing the broader vision during the process of making incremental changes. Agile project management can help.

The European Commission (EC) are committed to introducing a common corporate income tax system across the EU. The previous iterations - the Common (Consolidated) Corporate Tax base (CCCTB) 2011 and Common Corporate Tax Base (CCTB) are now withdrawn and replaced with the BEFIT Proposal. It remains to be seen if BEFIT will achieve the unanimous support required from Member States.

European Banking Authority (EBA) published final report on guidelines on Overall Recovery Capacity (ORC) in recovery planning on 19 July 2023, following a consultation paper in December 2022. The main change following the consultation is the implementation timeline for capital recovery options is now longer at 18-months (previously 12-months). These guidelines apply from 3 months after the publication date or 19 October 2023.

The Minister for Finance Michael McGrath has announced a plan to exempt foreign-sourced dividends from Irish corporate tax in a move toward the territorial regime of taxation. The proposed exemption will take shape over the coming months before being introduced in Finance Bill 2024, with effect from 2025.

This ECB paper is relevant to banks with derivatives and trading books; it explores the operational aspects and hidden costs associated with the wind-down of a bank’s trading book. An orderly wind-down of a trading book may be a recovery option or an element of a bank’s preferred resolution strategy. This paper details principles of ECB’s supervisory expectations with respect to both recovery and resolution planning.

Our focus in this paper is to develop decision making models using a range of advanced machine learning techniques. We explore three different methodologies to measure the discriminatory power between good and bad borrowers using a credit card portfolio dataset. The main hypothesis is that advanced modelling techniques lead to more efficient estimates and higher discriminatory power.

As a result of Brexit, and particularly following the introduction of the UK’s Financial Services and Markets Act, there is a potential for increasing divergence between EU and UK financial services regulation.

On 30 January, the Central Bank published Guidance for (Re)insurance Undertakings on Intragroup Transactions and Exposures following a consultation that ended in September 2022.

Green House Gas (GHG) emissions are classified into categories of Scope 1, Scope 2 or Scope 3. This is a way of grouping emissions between those created by the company and those created by its wider value chain.

The European Commission (EC) has adopted key initiatives, which aim to reduce compliance costs for large businesses operating across the European Union. The BEFIT proposal introduces a single set of rules to determine the tax base for large businesses that operate out of more than one Member State.