Ireland Seeks To Ease Regulatory Burden

by Jason Gorringe, Tax-News.com, London

27 June 2006

Ireland's Minister for Trade and Commerce, Michael Ahern yesterday announced the publication of a companies and investment funds bill which seeks to reduce the regulatory burden and improve Ireland's business environment.

“The Bill addresses a number of important issues in the company law and related areas,” commented Minister Ahern.

“The changes proposed are designed to facilitate business development, copperfasten our competitiveness in key sectors where it has been developed, ease the regulatory burden on business while facilitating the transposition of EU Directives”, he added.

The Bill proposes to increase audit exemption limits for turnover to the maximum level permitted by the EU, which currently stands at EUR7.3 million. This is in line with a recent recommendation of the Small Business Forum (April 2006) which pointed out that this would bring Ireland into line with the UK and a number of other EU Member States that allow the maximum limit.

The power to provide by regulations for mandatory dematerialisation (i.e. holding in electronic form) of the securities of companies listed on a regulated market is also provided for in the Bill. The government hopes that this move will assist in increasing ownership of securities listed on the Irish market by foreign investors, and is likely to be necessary to facilitate the continued settlement of securities transactions for the market through the CREST settlement system, which is moving towards 100% electronic settlement. It will also bring Ireland into line with international norms.

Other provisions will facilitate the transposition of the EU Transparency Directive, which is due to be transposed into Irish law by January 2007, and the EU Takeovers Directive, which was transposed into Irish law to meet the EU deadline of 20 May 2006.

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