James Kavanagh, Chairman: It has been two weeks since the Engagement Action Notice was issued by the Central Bank against J&E Davy.
The undermining of public confidence in the culture and ethical standards within the financial services sector in Ireland is deeply concerning. And more and more, we see that failure in Corporate Governance, and in broader ESG behaviour, can lead to corporate and economic loss.
Transparency is key to the restoration of public confidence in institutions. The Central Bank must be seen to implement the full range of its enforcement capability, and the professional bodies, charged with responsibility for the professional and ethical conduct of their individual members, must also be seen to act.
Corporate Governance excellence is founded on individual accountability. For that reason, the proposed Senior Executive Accountability Regime, which as part of the overall Individual Accountability Framework, will be a material addition to the regulatory regime in Ireland.
But excellence in Corporate Governance is about more than rules and regulations. It concerns the cultural and ethical standards set by boards, and the personal responsibility of directors. Education, training and professional standards have a key role to play if we are to restore public trust in corporate and institutional Ireland.