In a recent interview on the Newstalk Business Show, Michael Kavanagh, the CEO of the Compliance Institute, delved into the pressing issue of compliance within the financial sector. The discussion centered around the Institute's latest survey results, which shed light on the compliance status of Irish companies with the Sustainable Finance Disclosures Regulation (SFDR) and its growing significance.
The following is a summary of the key points which were covered during the interview:
Compliance Survey Results:
The interview highlighted the findings of the Compliance Institute's survey, revealing that less than one in three Irish companies fully meet the new EU requirements under the SFDR. This raises crucial questions about the state of compliance in the financial sector and the challenges companies face in adhering to sustainable investment regulations.
Emphasizing Transparency in Sustainable Investments:
The discussion emphasized the need for companies to maintain transparency in their sustainable investment products. Adherence to the SFDR not only ensures credibility in the market but also contributes to building a more sustainable and accountable financial ecosystem. Embracing compliance becomes essential for companies aiming to build trust among investors and customers.
Evolution of the Compliance Profession:
Mr. Kavanagh also touched upon the evolution of the Compliance Profession over the past few years and how the growing importance of compliance has led to its recognition as a fundamental pillar that strengthens the credibility and sustainability of businesses in the modern financial landscape.
The need for Irish companies to fully embrace the EU's Sustainable Finance Disclosures Regulation is highlighted and the fact that Compliance is no longer a mere legal requirement but a pivotal element that shapes responsible business practices and fosters trust among stakeholders. Embracing compliance not only safeguards companies from potential penalties but also demonstrates their commitment to transparent and responsible practices, positioning them as leaders in the sustainable finance landscape.
The survey results serve as a wake-up call for businesses to prioritize compliance with the SFDR and to understand its significance in promoting sustainability and accountability in the financial sector. As companies adapt to new regulations, they can strengthen their reputation and foster positive relationships with customers and investors by demonstrating a commitment to transparent and ethical practices in sustainable investments.”
To listen to the full interview and gain further insights into compliance matters and the significance of sustainable finance, click here: Newstalk Business Show Interview