Joanna Tuffy (Dublin Mid West, Labour)
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Question 39: To ask the Minister for Enterprise, Trade and Innovation the way he intends to implement the commitment contained in the National Recovery Plan 2011-2014 to promote competition in the professions; when the independent figure to oversee this process will be appointed; and if he will make a statement on the matter. [45532/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The National Recovery Plan 2011 – 2014 contains an action point to promote competition in the professions and that this will be overseen by an independent figure who reports to Government regularly. Arrangements for implementing this action point are being considered and I expect the matter to be brought to Government shortly. Financial Services Regulation

Ciarán Lynch (Cork South Central, Labour)
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Question 40: To ask the Minister for Enterprise, Trade and Innovation his response to the consultation paper on corporate governance published by the Financial Regulator. [45552/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The consultation paper referred to in the Deputy's question relates specifically to financial institutions and insurance undertakings, responsibility for which rests with my colleague the Minister for Finance. Having considered over 130 responses to the consultation paper, the Central Bank recently issued the corporate governance code for credit institutions and insurance firms which sets out minimum statutory requirements on how banks and insurance companies should organize the governance of their institutions. I understand the requirements are more demanding than those in place in other jurisdictions.

I also understand the Code adopts a two tier approach by imposing minimum standards upon the boards of directors of banks and insurers in general with additional requirements defined for firms that the Central Bank designates as major institutions. Differentiated standards apply to Irish subsidiaries of foreign regulated firms in a number of areas. The Code provides for transitional arrangements. It will apply to existing directors and boards with effect from 1 January 2011. Those institutions, which may need time to implement changes to systems and structures to become compliant will be given until 30 June 2011 to do so. Where changes to the Board are necessary, this period will be extended to 31 December 2011 to identify and assess suitable candidates with appropriate experience and diversities.

Failure to comply with the requirements may be subject to supervisory action and disciplinary procedures by the Central Bank, including sanctions under powers available to the Bank. I welcome the application of this Code and the fact that it does not adopt a one size fits all approach to take account of institutions with a lesser economic significance and lower risk activities.