Irish directors 'face fines over new governance code'

Individual directors found to be responsible for corporate governance failures at Irish banks will face fines of up to €500,000 (£425,900) under new regulations, it has emerged.

The Central Bank of Ireland issued its new corporate governance code for the financial sector earlier this week and has pledged to take a hard line with companies that do not meet its standards.

According to the Irish Independent, the potential cost of failing to comply with the regulations was discussed at a breakfast briefing hosted by corporate law firm William Fry on Thursday (November 11th).

Executives were told that individuals could be fined up to €500,000, while the total cost for institutions that fall foul of the central bank was estimated at €5 million.

The new code was welcomed by William Fry partner John Larkin, who claimed it should offer "clarity to companies that wish to ensure they have good corporate governance".

Maura Quinn, chief executive of the Institute of Directors in Ireland, has said the measures will "strengthen Ireland's position as a global financial services hub".