Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I believe this is a positive outcome for the Irish economy. It is important have a competitive and vibrant stockbroking sector in our country to help to ensure Irish companies and employers can access the funding they need to finance their future growth plans and employ more people in Ireland, particularly as we exit from Covid-19.

It is also a particularly welcome use for Fexco, which as the Deputy knows is a really important employer in the south west of our country. The proceeds it receives from this transaction will help it to continue to grow and innovate in financial services and maintain employment in the region.

This also offers a really good opportunity for AIB to deliver on its need to diversify its revenue in a low interest rate environment. The addition of Goodbody offers opportunities to the bank to be able to broaden the financial offerings it has in the life, pension, wealth and asset management sectors in addition to enabling Irish companies to access a wider range of services.

As the Deputy can appreciate, the standard remuneration arrangements in stockbroking businesses are very different from those that pertain in a retail and commercial bank such as AIB. Reflecting this, the bank sought my consent for the continuation of the current remuneration arrangements in Goodbody. I agreed to this but it is being done in a manner which ring-fences Goodbody from the rest of the AIB group and ensures ongoing compliance with the Government policy on bank remuneration. It is important to stress, therefore, that there have been no changes to the Government's policy on remuneration. Post deal, provisions at Goodbody stockbrokers will be completely ring-fenced from the rest of the AIB group, preventing any question of a breach of the Government's current salary cap and the pay restrictions that apply to the bank.

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