Worries on finance framework ‘miss the point’
The Central Bank鈥檚 deputy governor has defended the standards of conduct set out for top financial executives in a new individual-accountability framework.
Sharon Donnery (pictured) was speaking at the annual Financial Services Ireland dinner yesterday (16 November).
A recent survey found that 57% of those working in the financial-services sector were worried about personal exposure to liability arising from the .
鈥楶ositive outcomes鈥
Donnery said that, while the regulator鈥檚 sanctioning and enforcement measures received a lot of headlines, in the end they were designed to encourage positive outcomes.
鈥淭he individual-accountability regime will give us measures so we can pursue individuals directly for their misconduct, rather than only where they have participated in a firm鈥檚 wrongdoing,鈥 she told the event.
that, while she had heard 鈥渁 lot of consternation鈥 about this, it missed the point about the framework.
鈥淭he IAF bill prescribes standards of conduct which I believe are reasonable 鈥 for your customers, for your investors, for the Central Bank, and for society as a whole,鈥 she stated, citing the requirement to act honestly, fairly, and professionally, and not to mislead customers about services.
鈥楨ffective governance鈥
Donnery said that the Central Bank believed that most firms and individuals were already holding themselves to such standards, and that ensuring clearer accountability was not unreasonable.
鈥淎 successful individual accountability framework should encourage more effective governance. If the framework is embedded properly, and embraced by firms, it should ideally lead to fewer issues in the sector and limit the need for action against individuals at all,鈥 the deputy governor continued.
She added that the Central Bank would be 鈥渁iming to engage widely鈥 on the framework, and would receive feedback as part of a consultation process.