Grandfathering



Grandpa Simpson

Despite the various representations made by representative bodies it would appear that the Central Bank is committed to its plan to kill off all grandfathers in Financial Services.

It remains committed to this final solution despite the fact that it has acknowledged the following:

1.       There will be no improvement in the service received by clients

2.       There will be a €5m cost to the Broking profession which will be an additional cost to clients

An approach of this nature is not only contrary to the Principles of Good Governance  as enunciated by the Irish Government (it breaches the principles of Necessity, Effectiveness and Proportionality), it is also potentially in breach of  EU law.

Why?

Because the only industry professionals who will not have their experience recognised by the Central Bank are those that have developed that experience in Ireland. Experience gleaned in all other EU states will be recognised as those individuals will be eligible to provide services here based on the requirements of other EU states.

The concept of mutual recognition of qualifications is developed law in the EU.

In all such cases, where an individual falls short of the relevant educational standard, the host state is required to take into account the experience the person has gained within the EU. In the Bobadillo case the ECJ held that where a qualification wasn’t recognised it was necessary to look to the Professional Experience of the person to see if it was equivalent.

The Irish Brokers Association has proposed working with the Central Bank to develop a system which would recognise professional experience – in compliance with the basic principles of EU law.

To date this approach has not been accepted.

If we are to learn anything from the current financial crisis it must surely be not to have to rely on the EU to tell us how to run our own country.

I have no doubt we will come through the current financial crisis stronger than ever. And in years to come our civil servants will be travelling the world to see their services as to how this major economic problem was overcome.

The key asset they will be selling will be their experience.

What price can you put on that.

Aidan McLoughlin