Central Bank crackdown on multiple directorships
THE Central Bank is cracking down on funds listed in Ireland and directors who have a large number of directorships.
Gareth Murphy, who is director of markets supervision at the Central Bank of Ireland, told the Irish Funds Industry Association annual conference yesterday that the Central Bank wants to improve regulation in this area.
"Many of you will be aware that we have engaged with certain directors who have a large number of directorships," Mr Murphy told the conference in the Four Seasons hotel.
"The Central Bank is concerned that there is a concentration of directorships among a limited number of directors who have extensive directorial responsibilities in this jurisdiction and perhaps elsewhere."
The bank wants to challenge these directors on their capacity to deliver on their directorial commitments and to manage their conflicts of interest, Mr Murphy said.
Ireland is home to a large number of funds listed on the Dublin stock exchange and competes with Luxembourg for listings. Some directors sit on the boards of hundreds of funds.
"I have heard it said in certain quarters that there is an insufficient number of capable and experienced directors available," Mr Murphy said.
"It is a view that I do not share. The Central Bank's work in this area will continue."
"We will also do spot checks to see if what we understood at the point of authorisation is actually happening on the ground.
"This will form part of the Central Bank's series of themed-inspections in 2015," he added.