On the 22 May 2012, the Central Bank of Ireland issued a letter to investment and stockbroking firms regulated under the Markets in Financial Instruments Directive (MiFID) setting out a schedule of recommendations on corporate governance practices in such firms.  The recommendations follow a series of themed inspections undertaken by the Central Bank to evaluate current corporate governance practices in such firms, including their compliance with the high-level requirements for corporate governance of investment firms set out in MiFID.

Whereas the Central Bank notes in its information release in relation to this letter that the majority of firms inspected were ”found to be cognisant of industry developments in relation to corporate governance and a number of firms were observed to have implemented best practice in this area”, the Bank points out that “concerns were also identified with a number of the firms inspected demonstrating deficient and, in some cases, inadequate corporate governance arrangements”.

For a link to the Central Bank’s letter and information release, please click here.