On 31 March 2014, two regulations to give effect to the Capital Requirements Directive IV (CRD IV) were signed into law. The European Union (Capital Requirements) Regulations 2014 (the Regulations) gives effect to the Capital Requirements Directive (Directive 2013/36/EU), and the European Union (Capital Requirements) (No. 2) Regulations 2014 gives effect to a number of technical requirements in order that the Capital Requirements Regulation can operate effectively in Irish law.
The Capital Requirements Package aims to strengthen the resilience of credit institutions across the EU. The legislation deals with a diverse range of topics including remuneration provisions and some governance provisions.
Section 76 of the Regulations concerns governance arrangements in institutions and provides that the management body of an institution must define, oversee and be accountable for the implementation of the governance arrangements that ensure effective and prudent management of the institution, including the segregation of duties in the organisation and prevention of conflicts of interest. It must also monitor, and periodically assess the effectiveness of the institution's governance arrangements and take appropriate steps to address any deficiencies.
There are also requirements for nomination committees, including provisions relating to gender diversity targets and policies.
There are "country-by-country" reporting requirements which become operative from 1 January 2015. Institutions will be required to disclose annually, information on the nature of activities, turnover, number of employees, profit or loss before tax, tax on profit or loss and public subsidies received. Some of this information must be disclosed by 1 July 2014.
There are also a number of provisions relating to remuneration.