Wednesday, 10 August 2011

Central Bank of Ireland - Annual Compliance Statement guidance for new Corporate Governance Code

The fun never stops in the world of Irish corporate governance and risk management - new guidance from the Central Bank has been released to aid with the completion of Annual Compliance Statement (and how to evidence the statement's content) - "compliance" of course being with the new corporate governance code. Some fascinating elements, which should have crossover uses regardless of your jurisdiction, such as;

  • Boards must determine breach "materiality", in the context that "the Central Bank views all areas of the Code to be equally important"
  • Code will be reviewed "in light of relevant EU developments", naming Solvency II specifically - I personally read that to mean that the new code will be subservient to any Solvency II requirements.
  • Retention of supporting documentation section - excellent as a checklist of the kind of materials all Solvency II-affected undertakings should be reviewing as part of System of Governance and ORSA requirements, as well as likely sources of Use Test evidence
  • Risk Appetite section (sub section of the above) - confirms that, by implementing these requirements effectively, one should be in great shape for Pillar II
 Look forward to seeing some of the "material deviations" being made public once the guys get up and running, should be some nice test cases over 2012.

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