The Central Bank of Ireland has issued the Corporate Governance Code for Credit Institutions and Insurance firms which sets out minimum statutory requirements for how banks and insurance companies should organise the governance of their institutions. This is of particular interest to the Irish funds industry because (as highlighted in the September Front Page) the Central Bank is currently developing a funds industry Corporate Governance Code
The purpose of the new Corporate Governance Code for Credit Institutions and Insurance firms is to ensure that robust governance arrangements are in place so that appropriate oversight exists to avoid or minimise the risk of a future crisis. The Code includes provisions on the membership of the Board of Directors, the role and responsibilities of the Chairman and other directors and the operation of various board committees. It will apply to existing directors and boards from 1 January 2011 .The Code adopts a two tier approach by imposing minimum core standards upon the boards of directors of banks and insurers in general with additional requirements for firms that the Central Bank designates as major institutions.