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Wednesday, 24th April 2024 |
| Securitisation industry lobby Government to amend Bill |
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The Companies (Auditing & Accounting) Bill, 2003 in its present form would ‘undermine the credibility of Dublin as a serious and competitive financial centre’ and Ireland’s international securitisation sector is calling on the Government to include section 110 securitisation companies and IFSC-licensed securitisation companies as exempted companies in the proposed Bill. Otherwise, they say that, ‘any minor reduction in the competitive position of Ireland will result in the wholesale and speedy migration of the business to another European jurisdiction’.
In a submission made to the Department of Enterprise, Trade & Employment, by Financial Services Ireland in early May, the industry say that the ‘arguments regarding the lack of relevance/appropriateness of the Bill to the industry are compelling’, and they highlight four of the most problematic aspects of the Bill. 1) Director’s compliance statement; 2) IAASA review of financial statements; 3) The proposed levy; and 4) Obligation to maintain an audit committee.
There is no similar legislation for special purpose vehicles (SPVs) in other EU countries, and the industry believe that Ireland’s reputation of having a sophisticated regulatory approach will be severely damaged if this Bill is applied to the securitisation industry. ‘Increased supervision and regulation of accounts for securitisation SPVs bears no attraction for the market and there is no public interest element to be addressed in the securitisation industry. Imposing regulations that are totally unnecessary (in the securitisation context), and will be perceived internationally as such, undermines the credibility of Dublin as a serious and competitive financial centre. Any government perception that this Bill will augment our international reputation, in the context of the securitisation industry, is misplaced.’ Moreover, the industry state that the costs associated with the obligations in the Bill would be very significant, and they estimate that the Bill would drive costs up by 59 per cent based on current levels. The Dublin Funds Industry Association (DFIA) has also made representations to the DETE looking for exemptions from the Bill for investment funds. This was rejected however, and the DFIA are now looking for exemptions from specific provisions of the Bill. The Bill is due before the Irish Senate shortly. |
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