Mc 2 winter 2017 by publications

WINTER

2017 NEW BENEFICIAL OWNERSHIP RULES: THE MAIN FACTS Margaret Dinan

ECONOMIC OUTLOOK Dr. Constantin Gurdgiev

IS YOUR PENSION A TICKING TIME BOMB? MANAGE YOUR CHRISTMAS FINANCES IN 5 SIMPLE STEPS PARENTAL LEAVE: GETTING TO THE HEART OF EQUALITY A STAKE IN THE COMPANY MIGHT JUST BE THE PERFECT COMPENSATION

TABLE OF CONTENTS New Beneficial Ownership Rules: The Main Facts - Margaret Dinan Economic Outlook - Dr Constantin Gurdgiev Eir Price Hike Marginalises Older, Loyal, Vulnerable Customers Is Your Pension A Ticking Time Bomb? Business Briefs Manage Your Christmas Finances In 5 Simple Steps Parental Leave: Getting To The Heart of Equality 20,000 Consumers Urged to Switch and Save Energy Providers A Stake In The Company Might Just Be The Perfect Compensation Meet The Team Range of Services

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Welcome to the Winter 2017 edition of our newsletter. It is hard to believe we are almost at the end of another year but we hope it was a good one for you and your business. This newsletter has a wide variety of articles and news pieces which we hope will be of interest to you and your business. In this edition, we want to draw your attention, in particular to the article on Page 3 by Margaret Dinan, Senior Manager, Audit and Accounts. Margaret has outlined the main points relating to the New Beneficial Ownership Rules. We have a highly experienced and dedicated team here at MC2 Accountants who are always happy to assist you in whatever way they can, so please contact us by email at info@MC2group.ie or call 021 4861486 and we will be happy to assist you. Jim and Sean

NEW BENEFICIAL OWNERSHIP RULES:

THE MAIN FACTS MARGARET DINAN SENIOR MANAGER ACCOUNTING AND AUDIT MC2 Accountants

REGULATIONS

WHO IS IMPACTED BY THE REGULATIONS?

Article 30 of the 4th EU Anti-Money Laundering Directive (4AMLD) requires all EU Member States to put into national law provisions around beneficial ownership information for corporate and legal entities. The statutory instrument 560 of 2016 transposes the first sub-paragraph of Article 30 of the 4th EU Anti-Money Laundering Directive (4AMLD). The regulations have come into force since 15 November 2016.

The Regulations apply to all Irish companies and other corporate bodies, including, for example, ICAVs and industrial and provident societies (Relevant Entities). Certain companies exempt from the 2016 Regulations: 1. Those listed on a regulated market that is subject to disclosure requirements consistent with the law of the EU (including transparency regulations).

The process consists of two processes, namely:

2. Those subject to equivalent international standards which ensure adequate transparency of ownership information.

• Both corporate and legal entities must hold adequate, accurate and current information relating to their beneficial owner(s). This should be kept in the entities own beneficial ownership register.

The 2016 Regulations do not exempt Irish incorporated subsidiaries of listed companies.

• In due course, corporate and legal entities will be required to file the above information with a central beneficial ownership register. This central register is not established yet and the expectation is that a statutory instrument will be issued by Q4 2017.

WHAT INFORMATION IS TO BE HELD BY AN ENTITY? The following is a summary of the information that entities are required to hold under Section 4 of the SI:

DEFINITION OF A BENEFICIAL OWNER

• the name, date of birth, nationality and residential addresses of each beneficial owner of it (the beneficial owner must be a natural person);

A ‘‘beneficial owner’’ is defined as:

• a statement of the nature and extent of the interest held by each such beneficial owner;

Any natural person who ultimately owns or controls a legal entity through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity. A shareholding of 25% plus one share or an ownership interest of more than 25% in the entity held by a natural person is evidence of direct ownership.

• the date on which each natural person was entered into the register as a beneficial owner of it; • the date on which each natural person who has ceased to be a beneficial owner of it ceased to be such an owner; • If, having exhausted all possible means and provided there are no grounds for suspicion by the company, no natural persons are identified, or there is any doubt that the persons identified are the beneficial owners, there shall be entered in the register the names of the natural person(s) who hold the position of senior managing official(s) of the company (including their date of birth, nationality and residential addresses). In this case, a company shall keep records of the actions taken in order to identify the beneficial ownership of it.

A shareholding of 25% plus one share or an ownership interest of more than 25% in the entity held by a corporate entity, which is under the control of a natural person or by multiple corporate entities, which are under the control of the same natural person, is evidence of indirect ownership.

THE ENTITY BENEFICIAL OWNERSHIP REGISTER

WHAT YOU NEED TO DO

An entity must keep their own accurate beneficial ownership register. Any relevant changes must be made as soon as is reasonably practicable, after the entity learns of a change or has reasonable cause to believe that a change has occurred. Where a relevant change has occurred the company must issue a notice to the beneficial owner.

•

A relevant change includes, where:

•

Where the beneficial owners are known

The entity must send a notice addressed to the beneficial owner(s), this notice must be replied to within one month. The beneficial owner(s) must confirm whether they are a beneficial owner of the entity and correct any information which is to be kept on the register.

• A beneficial owner previously listed on the register ceases to be a beneficial owner; or

Where the beneficial owners are not known

The entity may send a notice to any person who it has reasonable cause to believe has knowledge relating to beneficial owner(s). The addressee must respond stating whether they know of any beneficial owners, or anybody who is likely to have knowledge of any beneficial owner(s) and supply any information of any beneficial owner(s) which they possess. Where the relationship between the addressee and the beneficial owner(s) is one of a legal professional privilege relationship, no information is required to be supplied.

• A change occurs as a result of the information in relation to the beneficial owners being incorrect or incomplete. Where a beneficial owner has received notice of a change they must respond confirming whether or not the change concerned has occurred. Where the change has occurred the beneficial owner must reply and: • state the date of the change;

•

• confirm/correct the information included in the notice; and

Where no beneficial owner(s) can be identified

Where the entity has exhausted all possible means and provided there is no suspicion, the entity should use one or more natural persons who holds the position of ‘senior managing officials’ (i.e. director or CEO of the company).

• supply any information which is missing from the notice.

BENEFICIAL OWNERSHIP - CENTRAL REGISTER It is expected that the Department of Finance will make a Statutory Instrument (SI) in Q4 2017 which will ultimately result in the Companies Registration Office (CRO) maintaining a central register of beneficial ownership.

ARE OBLIGATIONS IMPOSED ON INDIVIDUALS?

It is not clear what form the central register will take however it is expected that:

A person who is deemed to be a beneficial owner, or who ought to know that they are one, is under a duty to notify the entity that they are a beneficial owner (i) if the entity’s register does not contain the relevant details regarding that person; or (ii) if they have not received a notice from the entity requesting this information.

The Regulations do impose certain obligations on beneficial owner(s).

• The Register of Beneficial Ownership (RBO) should be in place and ready to be populated in Q4 2017 in line with when the SI issued; • A period of at least 3 months to file without being in breach of the statutory duty to file;

A beneficial owner’s duty to notify arises where the above circumstances have continued for a period of at least one month. The individual then has one month in which to send the notice which must confirm their status (as beneficial owner), the date on which the person acquired that status and the information required under the Regulations.

• Filing will be done through an on-line portal rather than paper based filing; • There will be no filing fee.

WHAT IF BENEFICIAL OWNERSHIP CANNOT BE DETERMINED

There is also a duty on individuals, in certain circumstances, to notify relevant changes in beneficial ownership.

FAILURE TO COMPLY WITH THIS REGULATION

Where an entity has taken all reasonable steps to ascertain its beneficial owner(s) but it not possible to establish the ultimate beneficial owner(s) of an entity and/or there are no natural persons who meet these threshold ownership requirements, the name and details of the directors or the Chief Executive Officer (CEO) of the entity should be inserted into the register.

Failure by an entity to comply with any requirement of the Regulations regarding obtaining and maintaining information on beneficial ownership, creating and maintaining the Register, serving notice on individuals and confirming any change in a beneficial owner’s details is deemed to be a criminal offence. An entity that commits such an offence can be liable for a fine of up to €5,000 on conviction.

If you require assistance or want to learn more, please contact our team. Penrose Wharf, Penrose Quay, Cork, Ireland

It is also a criminal offence for an individual to fail to comply with their obligations under the Regulations, to comply with the terms of any notice sent to them or makes a statement that is false in a material way, knowing or being reckless as to whether this is the case. A person that commits such an offence can be liable for a fine of up to €5,000 on conviction.

021 4861486 info@MC2group.ie www.MC2Accountants.ie

Dr. Constantin Gurdgiev

LEARNING FROM THE LAST CRISIS Recent months have seen a steady and growing flow of institutional investors’, and market analysts’, and researchers’ warnings about the medium-term sustainability of the financial assets prices. Both, the IMF and the Bank for International Settlements (BIS) have documented evidence on the buildup of systemic imbalances across the financial markets, from bonds to stocks to structured financial instruments. And the Claudio Borio-led research team at the BIS have shown time and again that systemic financial crises are increasing both in frequency and severity.

By all measures, the financial markets are over-pricing forward expectations and underpricing risk. Various estimates suggest that globally some $20 trillion worth of government and private debt traded in the markets is currently priced at a gross underestimate of risks implied by the path of the monetary policies and borrowers’ debt carry capacity. The stock markets are showing signs of excessive concentration and share prices are on fire: even as past buybacks and current accounting standards continue to inflate earnings, S&P 500 median priceto-revenue ratio is hitting all time highs of c. 250 percent, compared to the dot.com bubble peak of 170 percent and pre-

GFC bubble high of 180 percent. U.S. stock market valuation is currently running at just over 135 percent of GDP – the second highest reading in history after 152 percent mark hit at the peak of dot.com bubble and well above 110 percent peak before the GFC collapse. All signs to-date are that the longer the bull market continues to run, the sharper the upcoming crisis will be. Which brings us to the point of what lessons from the last decade of crises, crashes and recovery should the investors rely upon in preparing for the next crisis.

MARKETS ARE ABOUT RISK - MARKET CRISES ARE ABOUT VUCA The first lesson is about the difference between normal risk and the VUCA (volatile, uncertain, complex and ambiguous) environment.

Passive investment is not an option, and active management comes at a ballooning cost. One important corollary of this is that during markets crashes, quality of professional advice available to the investors often deteriorates. Recent academic studies have shown that during the Global Financial Crisis (GFC) and the Great Recession, analysts’ forecasts had extremely low predictive power, leaving retail investors with advice that was poorer in quality and leading to costlier trading and investment mistakes. Ratings agencies and banks are virtually useless and highly conflicted when it comes to predicting the crises and supporting investors during the systemic markets corrections.

While investment is a risky business on a good day, in crises, traditional risks are amplified by rapidly evolving price and trading cost volatility, broad markets uncertainty, systems and networks complexity, and loss ambiguity. Behaviourally, this means that investors’ reaction to crashes and longer term crises is unpredictable and investment portfolios values during these periods cannot be assessed with any degree of accuracy. Events that no one could predict in advance, such as large scale sell-offs, massive widening in bid-ask spreads (cost of trading), reversals of historically reliable correlations between asset classes, and failures of traditional hedging and safe haven assets to absorb risks can become the order of the days, weeks, months, even years. In other words, markets crises cannot be weathered without a prior preparation and constant vigilance.

Investor response to this reality should involve doing your homework early, in advance of the crash, and securing a good trusted adviser that you work with in normal times as a sounding board for your trading and investment ideas during the crisis.

CASH IS A KING - IN ANY CRASH Financial risk is a function of three things: the price at which you enter the investment, the timing of exiting the allocation and the round-trip cost of trading. This means that for those with staying power (unlevered and longer-term investors), crises are the time when asset prices undershoot their fundamental values, effectively de-risking asset returns. In other words, crises are the time to buy. Counter-intuitively, the time when market-measured risks are at their highest is the time when investment risk is at its lowest.

major market crises timing, duration and depth. Sensing build ups of financial imbalances, understanding inherent risks in assets that are being bid up in the run up to the crisis, and tracking the herds of investors sloshing liquidity from one fad to the next requires subjective, human analysis based on data. So timing crises is more in the domain of arts and less in the domain of hard mathematics. Having cash in hand when the crisis hits is also about fighting personal greed. Too often, as was the case with many investors pre-2008, a run up to the bear markets involves mis-allocation of cash to higher yield instruments. Much of cash management involves chasing higher returns by trading liquidity for marginal returns (few basis points paid out by the banks on termed deposits). Greed, as a motivator for action, looms larger when market valuations are at their highest. However, to have ready funds to invest in distressed assets requires holding assets that are not subject to liquidity squeezes and do not lose value when markets tank. Which means you have to fight your own behavioural biases and stay away from chasing small gains in the money markets in order to have cash in hand.

However, the uncertainty factor – covering the future direction of the markets post-crisis – increases the risk of entry and exits (cost of trading) and the risk of short-term negative returns. An investor buying into a falling market simply does not know how long and how far the market can fall from the point of their purchase. Which means that to benefit from the sharp market corrections, investors should rely on cash when buying at the market lows. This, in turn, means that investors should consider booking profits before the crisis, when liquidity is still available and the trading costs are lower. The problem is that, as the GFC has taught us well, traditional financial markets risk models are utterly useless in predicting

VALUATIONS ARE WIDOW-MAKERS Investors tend to see the latest traded price of a security as its market value. This is false for a number of reasons. One is the low transparency of today’s market prices: with over-proliferation of over-the-counter venues for trading in financial instruments, quoted market price is just one signal of value. Another is the decreasing informational content of executed trades during sharp market downshifts, when unquoted liquidity risk matters more than quoted prices. The third is the dynamics of prices going into the market peak

period, when investors’ exuberance pushes prices away from fundamentals-justified values. Last, but not least, quoted prices ignore trading costs that tend to blow up at the time of markets corrections on the sell side of transactions and at the times of markets inflation on the buy side. Skepticism about informational signals contained in ticker prices is warranted at the times of markets exuberance. Contrarian view is in order when markets hit the breaks.

RISK MANAGEMENT AT THE TIME OF TURBULENCE Investment allocation is one half of the portfolio management exercise. Risk mitigation is the other.

The third principle that should not be overlooked is that only commitment to a flexible, measured and diversificationfocused investment approach can provide a long-term offset to the deeper uncertainty that sweeps the markets at the times of panic selling. Portfolio rebuilding opportunities presented by sell-offs are generally dispersed across a range of sectors and instruments, asset classes and geographies. Staying with pre-crisis allocation strategies can be a costly proposition, subject to severe familiarity bias and base rate neglect errors. The former refers to the fact that investors miss new opportunities because we fool ourselves into believing that we ‘know well’ specific sectors or assets, irrespective of the underlying realities of the market. The latter means that we often assign pre-crisis probabilities of success to assets we are familiar with, irrespective of the changes that the crisis might bring around.

The first principle of risk management is the stop-loss rule. Behavioural psychology generates biases that skew our decision-making toward erroneous choices, and overcoming these requires serious effort on behalf of an investor. One key set of biases involves the endowment effect and the status quo bias. Jointly, these imply that faced with rapidly escalating VUCA environment, investors prefer staying the previous course to a course of quickly realising early losses. The greater the losses sustained in the downward market to-date, the stronger is the propensity to do nothing. In the end, investors over-hold their long positions and end up magnifying market-induced losses. Thus, the conservative view of one’s portfolio is the best position for entering a financial crisis: when you feel that the markets have turned or are about to turn for a sustained downward correction, sell to book either profits or to minimise losses. Being conservative and risk-conscious helps to maintain a longer-term focus on your investment objectives.

The same applies to managing cost of rebuilding your portfolio during the crisis. Volumes of evidence show that in all markets, when prices fall, volumes of assets available for sale rise, and numbers of buyers shrink. This results in lower cost of trades for the buyers. The converse happens when markets turn to the upside, when cost of buying rises relative to selling. Hence, buying into the falling market can be more advantageous than waiting for the market to bottom out. Of course, this also means that having bought into the falling market you will need to be ready to endure a period during which your portfolio value will continue to decline alongside the market. The key to surviving through this is: avoid leverage and do not gamble away that cash which may be needed to cover your normal expenses and legal liabilities.

The second principle applies to the times of market panics. In terms of hedging, keep in mind that risk hedges and safe havens are only good when entered prior to the crisis onset. Once the crisis is in full swing, you will not be able to either roll over or increase your hedges.

LEVERAGE RISK Which brings us to another lesson that must be learned from the last decade: stay away from leverage and beware of all hidden forms leverage can take. For institutional investors, this means closely matching duration of their portfolio assets to maturity profile of their borrowings. And this holds for normal times. In markets nearing correction, duration of portfolio holdings can be a tricky matter. This means that institutional investors should constantly monitor their debt exposures and stress test their assets against both liquidity risks and potential liabilities-related risks. For retail investors, the rule is avoid leverage at all costs. When a broker or a banker comes knocking with offers of margin accounts and loans for investment purposes – do not open the door.

Leverage is both, the fuel of the crisis and often the cause of it. Excessively lax lending standards create vulnerabilities in the financial system by raising debt loads across the economy and by lending to customers without any resilience to even minor risks. This holds for corporates and households alike. But the same lax standards also push asset valuations beyond their fundamentally-justified values, creating asset price bubbles. The faster the lending bubble inflates and the longer this inflation continues, the greater will be the eventual collapse. Leverage risk excesses, in this case, will invariably result in the breakdown in historically-established correlations between assets returns, as witnessed in 2008-2009. Final point worth stressing when it comes to leverage risk is that investor-own degree of leverage is, in part, a function of their disposable income and their non-investment liabilities. In this context, a smart investor will never face a market crisis with significant exposures to future expected tax liabilities. Getting your house in order before the crisis, and being prepared to cover these liabilities without the need to rely on selling assets into a falling market (incurring losses and higher costs of such trading) can be extremely important.

Beyond direct debt, you should pay attention to assets you’re invested in. Many instruments sold today to a range of clients are built on leverage. While purchasing these does not expose you to direct debt, your returns are still subject to leverage risk held by the fund you are buying into. At times of extreme markets uncertainty, leveraged assets lose their liquidity and their value collapses much faster than for their unlevered counterparts.

BEWARE OF INNOVATION, DISRUPTION AND TECH As a fintech investor and adviser, I enjoy the excitement of working with innovative companies. As an investment markets analyst and researcher, I see financial innovation as a major risk. The GFC, and indeed the entire history of crises before then, taught us that financial innovation can be extremely dangerous for the investors. New technologies and products in finance are the unknown unknowns when it comes to their performance in the downturns. They also submit to no established or testable hedging. Being long innovative products and technologies means you can neither control their downsides, nor can you account for their impact on your portfolio. Beyond this, many innovative products are focused primarily on securing higher leverage, hidden behind fancy labels and structuring formulas. Mortgages Backed Securities and other ABS Products c. 2007-2008 are the case in point. So going into a crisis, investors should not hold any serious exposure to the financial innovation or financial services sector more broadly, with exception, perhaps of financial utilities: insurance companies with established, non-financial lines of business.

GOVERNMENTS AND REGULATORS: PREPARE FOR THE NEXT ‘SOFT LANDING’ CALL The above points bring us to the financial markets regulators’ and Government’s role in the crises. While all of these entities claim to hold investor interests at heart, none of their claims are worth a single penny when it comes to the financial crises. The Italian banks rescue this year shows that all the new resolution mechanisms designed to deal with the future banking crises are nothing more than paper tigers.

An investor can and should be ready to capture this upside, even though the uncertainty about the extent and timing of supports is now higher due to a long period of aggressive monetary expansion that we are still going through. In the meantime, neither the regulators, nor the governments will be of any use in helping investors avoid the upcoming GFC 2.0. With them, rating agencies, and a host of industry lobbying and advisory bodies will also stay silent on the building risks threatening the system. So when regulators and governments start talking about the next ‘soft landing’ – run for the hills, go cash and sit back for the next opportunity to buy into the falling prices.

The governments will respond to the next crisis in exactly the same way they responded to the previous one: pumping more cash into the markets and re-inflating debt assets first, followed by equities. This means that timing-wise, public assets are more likely to show earlier recovery than private assets.

Dr Constantin Gurdgiev is the Adjunct Assistant Professor of Finance with Trinity College, Dublin and serves as a co-founder and a Director of the Irish Mortgage Holders Organisation Ltd and the Chairman of Ireland Russia Business Association. He holds a non-executive appointment on the Investment Committee of Heniz Global Asset Management, LLC (US). In the past, Dr Constantin Gurdgiev served as the Head of Research with St Columbanus AG (Switzerland), the Head of Macroeconomics with the Institute for Business Value, IBM, Director of Research with NCB Stockbrokers Ltd and Group Editor and Director of Business and Finance Publications. He also held a non-executive appointment on the Investment Committee of GoldCore Ltd (Ireland) and Sierra Nevada College (US). Born in Moscow, Russian, Dr. Gurdgiev was educated in the University of California, Los Angeles, University of Chicago, John Hopkins University and Trinity College, Dublin.

Eir Price Hike Marginalises Older, Loyal and Vulnerable Customers A year after its last price hike, telecoms giant Eir announced another price hike, which will affect their long-standing customers for the third consecutive year. Only those who recently signed up for a package will be able to escape the newly increased rates, while older people will be charged higher tariffs.

Packages affected will include business and voice customers voice services, broadband bundles and standalone broadband. That means that approximately 500,000 customers will be paying increased rates, of up to €84 per year, based on monthly fees alone. New higher rates will be phased in starting with monthly charges increasing from between €3-€7, and call costs increasing by 33%. There will also be an increase in call rates that fall outside of voice plan allowances. An Eir spokesman confirmed that new customers will not be affected by the increased rates, and neither will mobile users and New Fibre To The Home (FTTH) customers. Michael Kilcoyne, the Consumers Association’s Deputy Chairman, accused the telecom giant of singling out vulnerable, older customers, as this hike will not affect consumers who recently switched to Eir but rather those who are less likely to switch to a different provider, many of whom are older customers who are already vulnerable due to the loss of their telephone allowance. He called on the company to reconsider this hike, and urged them to offer a loyalty discount instead. A spokesperson for Eir denied that the price hike exploited older, loyal customers, and insisted that the company’s triple and quad-play pricing remained the best value on the market for TV and mobile bundles. There is a silver lining though, as in a letter to their customers, Eir gave clients the opportunity to opt out of contracts early. Switcher.ie’s Eoin Clarke said that price increases were becoming an annual occurrence in the TV and broadband market, despite the fact that ComReg has ranked Ireland as one of the most expensive Western countries in terms of broadband pricing. Last year, thousands of homeowners using Eir saw broadband and call costs increasing, with some prices reaching almost €100 a year. The most recent price hike from Eir follows increased phone, TV and broadband prices from Virgin, Sky and Vodafone.

Is Your Pension a Ticking Time Bomb? The latest census revealed a most shocking statistic regarding private pension coverage in Ireland. More than three-quarters of all respondents revealed that they would have to rely solely on a State pension when they retire. Only 24% of people, including public workers, have a pension arrangement aside from their State pension, which totals €12,391.60 per year.

Auto-enrolment is a fairly simple concept, which automates enrolment of individuals into pension schemes the moment they enter a workplace. Depending on the situation, they may opt out of the scheme after a certain time frame while some arrangements are mandatory.

Taoiseach Leo Varadkar addressed delegates at IBEC in September, indicating that the Government is aware of the situation. He said it is vital to ensure that more people make provision for decent pensions on retirement. He highlighted the importance of acting decisively in light of the recovering economy and promised that the Government will publish a five-year roadmap for pension reform by the end of 2017. The roadmap will include the introduction of an auto-enrolment pension scheme for private sector workers, since two-thirds of them have no occupational pension with which to supplement their State pensions. According to Varadkar, the Government hopes to pay the first benefits into the new individually held funds by 2021.

While contribution rates vary between different countries, it typically starts out low for both the employee and employer, but it then increases over the years as people become accustomed to paying it. New Zealand and Australia have successfully established auto-enrolment pension schemes and as a result enjoy significant coverage rises. Ireland has debated the issue of inadequate supplementary pension coverage and the concept of auto-enrolment as far back as 2007, and that led to the introduction of the Government Pensions Green Paper. In 2010, the National Pensions Framework was introduced, which set out Government’s intentions for a wide-scale, radical reform of Ireland’s pension system. The commitment to introduce a universal scheme was renewed in 2014, with a strong preference for auto-enrolment. The Interdepartmental Working Group followed this issue closely, but it deteriorated during deliberations.

While it is encouraging to know that solutions are being sought, it is important to remember that this will not be our first time hearing about auto-enrolment. It has been discussed for years. Varadkar spoke about it in the months before taking over as Minister for Social Protection in 2016 when he said, : “A majority of our citizens will rely solely on the State pension in retirement. For some, it will be enough to maintain their standard of living into old age. But for many, it will not. That’s why I view the development of a universal retirement saving system for people without supplementary pensions as an essential objective.”

CSO’s Quarterly National Household Survey found that in 2009, overall supplementary pension coverage was at 51%, however, by 2015, it had fallen to 46%. Only 36% of people in the 25-34 year age category have coverage, with a measly 14% in the 20-24 age category. These figures are obviously quite alarming.

AUTO-ENROLMENT RINGS IN DRAMATIC IMPROVEMENT Since the UK introduced auto-enrolment back in 2012, they have seen drastic improvement. Their situation was quite similar to that of Ireland before this change, with a 47% coverage, which rose to a healthier 66% by the end of 2016. During this same period, the UK went through a tough time that included stagnant wage growth and austerity policies.

Younger people, in particular, will benefit from an auto-enrolment scheme, as they will enter a pension scheme at a younger age. Hopefully, they will remain contributors, which will enable them to accumulate retirement savings for a longer period of time. Mairéad O’Mahony, financial wellness leader from the HR consultancy firm Mercer, is also optimistic about autoenrolment. She was excited to hear that Taoiseach is following through on his campaign statements when campaigning for Fine Gael leadership, in reference to his announcement of the roadmap and contributions that are due in 2021. Although Ireland is still ten years behind the UK in implementing this policy, it is wonderful that it is being done.

According to Alistair Byrne, State Street Global Advisors’ head of European defined contribution investment strategy, auto-enrolment is an effective tool, which raised private sector coverage by 30%. Additionally, he concedes that the introduction was met with a great degree of scepticism. It was thought that the majority of members would opt out using the soft-compulsory option once the opportunity presented, however, there has not been much resistance at all. It remains to be seen whether more people will opt out when contributions are increased by 4% - that will be the acid test.

She believes that it will be a major challenge for Government, in terms of implementing such a large-scale project. There will be many questions, in terms of settling on a contribution rate and finding the right scheme to manage it. However, the prize is worth the effort.

In the UK, the auto-enrolment starts with a 2% contribution, a minimum of 1% which must be paid by employers. It eventually rises to 8%, at which point employers must pay a minimum of 3%. There is some fear that employees will back out as the rates rise.

Out of the six million new savers, only 8 or 9% have opted out. It’s a psychological notion that once people have opted in, they typically tend to stay the course, and that’s why auto-enrolment is the way to go.

Byrne maintains that a scheme such as this will work for Ireland, and he does not believe that the rising rates will cause a meaningful increase in opt-outs.

Investec’s Brian Kingston is also positive about auto-enrolment, and adds that some attention should be paid to the tax relief effort. Tax relief is a valuable tool, as people paying tax at a marginal rate only pay €60 to save €100. However, many people don’t fully appreciate tax relief.

Financial planning consultant, Peter Feighan at Davy agrees with Byrne. He believes that auto-enrolment will help improve the frightening Census statistics, provided the details of the sheme are carefully considered. He believes that some of the important details to which schemes should pay attention include the ability to opt out, competition between schemes, and mobility between different schemes, as a start. If the contribution level starts at 1% or 2% it must be considered whether it will increase over time, and when increases will be phased in. In order to be able to deliver meaningful pensions, contributions have to be at a certain level.

Many Irish people were enthusiastic when the SSIA scheme was introduced, whereby the State directly topped up savings. Perhaps a direct top-up contribution instead of tax relief might be received better by members of the pension scheme. Perhaps a direct top-up arrangement will encourage employees to contribute 4%, which will be matched by their employers, and the State topping it up by adding another 2%. When employees see their employer’s contributions and that of the State, it will make the scheme much more attractive as a whole.

Feighan is encouraged by the response of Regina Doherty, the Minister of Social Protection, who has started filling in some details regarding the percentage contributions. Some of the issues she is considering include an opt-out option, as well as mandatory enrolment. Those are some of the issues that have secured the success of the scheme in the UK, which has seen an additional 1 million savers join in the past year.

Alistair Byrne agrees that tax relief is poorly understood by most of the population. He feels that people will be attracted by the top-up. While there is no difference economically, it sends a nice message, which will send a positive message going forward. The UK has proven that Ireland’s situation can be remedied. Hopefully the Government will consider a more ambitious target than 2021 by which to implement this solution.

BUSINESS BRIEFS IRELAND TO JOIN EUROPEAN SPACE RESEARCH ORGANISATION

as data analytics, software and photonics”, according to Minister for Training, Skills, Innovation, Research and Development, John Halligan. Membership will ensure Irish companies can compete for ESO contracts to develop innovative products and services, and enhance research opportunities for third-level institutions, he said. The announcement came after a long campaign from the astrophysics community in Ireland, said Dr Sheila Gilheany, policy adviser for the Institute of Physics in Ireland. The Department is also to receive €15 million to allow access to new product opportunities from European Space Agency contracts and to help secure research and development funding from the EU Horizon 2020 programme.

Ireland will join the European Southern Observatory (ESO) in 2018 following an increased capital budget allocation from The Department of Business, Enterprise and Innovation. Created in the early in 1960s the ESO, is a 16-nation intergovernmental research organisation for groundbased astronomy with headquarters in Munich, providing astronomers with state-of-the-art research facilities and access to the southern sky – its observatories are located in northern Chile. The benefits of membership will be significant including “the creation of advanced enterprise skills in areas such

HONG KONG- DUBLIN ROUTE TO STRENGTHEN IRISH LINKS TO ASIA

marketplace has struck a chord with business leaders. Mr Murray said the new route would solidify the growing relationship and will hugely assist in expanding trade and creating jobs. He believes it is only a matter of time before other routes are added, particularly to the main business hubs in China. Dublin Chamber Chief Executive, Mary Rose Burke said the route provides an opportunity for businesses to diversify in an increasing era of uncertainty. She commented that huge opportunities exist in Hong Kong for Irish businesses and the country provides a gateway to the lucrative Chinese market. Furthermore, strong synergies exist between the two countries enabling the sharing of knowledge and skills necessary to drive twoway trade and investment links in areas such as fintech, education, technology, tourism and food and beverages.

A new direct route between Dublin and Hong Kong will “dramatically” strengthen an already burgeoning business relationship between Ireland and Asia, according to business and political figures. Cathay Pacific announced it will operate a new direct Dublin-Hong Kong service four times per week from June. The year-round service will be Dublin Airport’s first direct route to the Asia-Pacific region. Trade between Ireland and Asia has been strengthening at a rapid rate, according to Irish economic think-tank Asia Matters. The organisation has increased its membership by almost 70% over the last 18 months, with Executive Director Martin Murray saying the growing business links and exchanges between Ireland and the Asian

IRISH WORKERS ARE MOST ‘OVERQUALIFIED’ IN EUROPE

decade or so, according to some projections. By contrast, countries such as Germany have much lower rates of school-leavers progressing to university, with many opting for traineeships and apprenticeships which have much higher status than at home. Tony Fahey, Professor Emeritus at UCD, who quoted the figures in a presentation to the annual conference of Education and Training Boards Ireland said they highlighted the challenge of matching education levels to skills needs. However, he said the issue was complex in that people who may be labelled as overeducated for their current role may yet benefit in the future. There has been a dramatic fall-off in the numbers taking part in apprenticeships or training, a pattern which coincided with the economic downturn. There are ambitious Government plans to increase numbers taking up further education options over the coming decade, with a series of “white collar” apprenticeships launched recently in areas such as insurance and financial services.

Irish workers are the most overqualified in the European Union for the jobs they are working, according to latest research. About one in three workers are at least one educational level above the international norm for the jobs they are in. This is the highest rate in the EU and almost twice the level of countries such as France, Sweden and Finland. The findings, based on research carried out by the Economic and Social Research Institute (ESRI) between 2000 and 2011, are likely to spark a debate over whether we are sending too many students to third-level. Ireland has one of the highest proportions of young people in Europe progressing on to higher education, with about 60% of all school-leavers attending universities or institutes of technology. This figure is projected to increase to 70% over the next

OVER 80% OF SMES FALL VICTIM TO CYBER CRIME

types of attacks revealed in the report include experienced computer related crime, excluding ‘Spam’ or Phishing’ emails (30% of firms affected), virus infections (62% - up from 42%) and theft of company data (5%). Of those who experienced a computer related incident, ‘Spam’ is the most prevalent issue at 74%, an increase from 67% in 2016. However, there has been a reduction in the numbers of hardware thefts, down from 11% in 2016 to 3% in 2017. The ISME CEO, Niall McDonnell warned that businesses must become more aware of the threats posed by cyberattacks and take the appropriate preventative measures, such as changing computer passwords. The ISME has put forward several recommendations in combatting e-crime both for businesses and the Government including the establishment of a ‘Cyber Security Information Sharing Partnership’, similar to the UK’s system, which allows for the sharing of cyber threat information and the establishment of a central body to deal with cybercrime.

The majority of small to medium Irish businesses have fallen victim to cyber crime - and would like to see a central body set up to prevent and tackle these incidents. However, some 20% of these firms don’t change their password. Over the last twelve months, some 81% of SMEs have reported an e-crime attack on their firm and 98% have called for the establishment of a national cyber crime group. The figures were revealed in the latest e-crime report from the Irish Small and Medium Enterprise Association (ISME), which has been released recently. Although the number of firms stating they were subject to an attack has fallen slightly compared with last year’s figure of 82%, ISME said the issue of cyber-attacks and online computer related incidents has increased over the last decade. Details of the

weeks to October 8th consumers spent more than €2.37bn on groceries across the five main players. Recent CSO figures showed the annual inflation rate eased to 0.2% in September from a four-month high of 0.4% in August; adding that food prices fell due to lower prices across a range of products including soft drinks, vegetables, bread and cereals. An upsurge in the purchase of branded goods (as opposed to own label goods) was also noted in the latest Kantar figures. Kantar CEO, David Berry commented that in the run up to Christmas, a time when shoppers usually turn back to brands - it is likely that this trend will continue.

GROCERY SPENDING RISES DESPITE TIGHTER PRICES Shoppers have continued to spend more at supermarket tills even with an easing in price reductions, new figures show. Latest data from consumer insights agency Kantar Worldpanel covering the 12 weeks to early October show an easing in standard grocery price deflation, with prices falling 0.1% in the period compared to a 0.4% fall in the preceding quarter. Nevertheless, shopper spending continued to rise with a 2.1% year-on-year increase noted for the period. In the 12

IRISH RETAILERS WHO ARE UNABLE TO ACCEPT NEW PAYMENT METHODS RISK MISSING OUT ON SALES

The study explains the difference by showing that card costs are, for certain merchants, fundamentally fixed, whereas the cost of handling cash has more variable elements. For example, back office administration accounts for 25% of the cost of cash, with the physical volume handled represents the other 75%. As the volume of cash accepted increases, greater resources are needed for counting, checking and controls during the day and for banking purposes. Furthermore, the research showed that the times that businesses spent counting cash transactions was on average 94 minutes a day, versus totalling card transactions which was 28 minutes per day. Visa says these figures reflect the efficiencies that cards can deliver for a business. As a result, business owners could save anywhere between €5,000 and €6,000 per year on cash handling costs. Commenting on the research findings, Country Manager at Visa Ireland, Philip Konopik said that despite consumers embracing electronic payments, Irish retailers unable to accept new payment methods risk missing out on sales and incurring excessive costs. Furthermore, new digital till systems are more efficient and automated, providing businesses with immediate data and insights into their business together with reducing costs by providing accounting and inventory control.

Irish small businesses are at risk of falling behind international peers in their adoption of digital payments technology, according to new research commissioned by Visa. The research shows that Irish SMEs could individually save between €5,000 and €6,000 per year on cash handling costs by increasing the amount of electronic payments they process. It is estimated that Irish consumers now spend more by card than cash, with shoppers spending an average of €10,465 on cards per capita each year, compared to €5,388 in cash. Contactless payments are one of the key drivers behind this trend with the technology now accounting for one in three of all face-to-face Visa transactions in Ireland. Visa commissioned research to investigate the hidden costs of cash in terms of back office and security costs and better understand how they compare to card transactions. The research established that for the businesses involved in the study it is cheaper to accept €1 as a card payment rather than cash, with cash handling costing 2.5 cents per Euro of sales compared to 1.6 cents for a card transaction.

MANAGE YOUR CHRISTMAS FINANCES IN 5 SIMPLE STEPS

PLANS AND PRIORITIES

Planning and prioritising can help you get through the year-end without blowing all your savings. By adding a little extra to your weekly shop in the weeks leading up to Christmas spreads out the additional expense of the season. But remember, you have to meet all your household bills and monthly commitments before you start buying gifts. That way, you will start the new year on a clean slate, rather than with with the pressure of financial obligations.

STAY ON BUDGET

One of the major obstacles of year-end financial management, is the fact that we all get caught up in the festive cheer, which limits our resistance to the little things we want to buy. The best way to avoid being caught up in the moment and spend money you later regret, is to create a budget and stick to it. Budget an amount of spending per person and visually keep track of your spending to help avoid impulse buying. Knowing how much you have spent is the best way to deter you from overspending.

SHOP AROUND

You can save a lot of money by doing your research and shopping around for the best deals before you splurge. Try to avoid trawling through shops around Christmas time, as you will be tempted to buy whatever you see first in order to ‘get it done’ so that you can escape from the crowds. Instead, visit price comparison sites to help you find better deals and trim time off your shopping trips. Two good sites on which to research your options, include shopmania.ie and compareireland.ie.

The end of each year with all the celebrations and Christmas shopping can place significant strain on your finances. It’s easy to spend a little extra here and indulge in a luxury there, and before you know it, it can be hard to make ends meet. We’d like to help you avoid over-indulging and feeling that horrible pinch of postChristmas spending remorse once the new year rolls around. Here are our five top tips for managing your Christmas finances.

Sometimes, you may be lucky to get a good deal online, which will save you from spending time in the crowded shops and provided you don’t browse the ‘deals’ pages, should prevent impulse buying.

SPREAD OUT THE SPENDING

By buying small food items over the course of the next few weeks, you will not feel the grocery bill as much as you would during Christmas week. Be sure to use all your loyalty cards whenever you shop, as that will help you earn some nice coupons and vouchers when the new new year rolls around.

AVOID CREDIT

As much as possible, avoid using credit cards for Christmas spending. Cash will help you manage your finances more effectively, and it will be easier to avoid purchases you cannot afford. Additionally, there won’t be a nasty credit card bill waiting for you in January. Spending cash rather than credit cards usually helps prevent overspending. Avoid withdrawing cash from your credit card, because the fees and interest rates are high. It will also have a negative impact on your ability to obtain a mortgage in future, as lenders frown upon that habit.

Parental Leave:

GETTING TO THE HEART OF EQUALITY A recent study by Hays Ireland, entitled Hays Ireland’s Gender Diversity Report 2017, has highlighted an inequality with regards to parental leave and perceived entitlements. More than fifty percent of employees do not feel that fathers in their organisation make use of their full allocation of parental leave and most of them feel that fathers are concerned about the negative impact it would have on their finances if they were to take their full leave entitlement. A sizable portion of respondents thought that fathers might be afraid that employers will question their commitment to their careers.

Yet, both men and women felt that flexible working options might harm their prospects for career advancement. Gender disparity became evident when respondents were asked whether flexible working options were career limiting for women, as 75% of women and nearly 60% of men agreed that it was. When asked if flexible working options would be career limiting for men, 64% of men and 54% of women agreed. Organisations’ approaches to gender equality seems to dissatisfy workers, which indicates some room for improvement. While every employee plays a role in working together to create a diverse and inclusive workplace, it is ultimately senior management’s responsibility to create and execute suitable programmes.

The 250 male and female respondents who were surveyed work in technical and specialist roles in Ireland. Twenty - six percent of respondents said that they view parental leave as a benefit that was exclusive to mothers. Irish employment law provides 18 weeks of parental leave per child for both fathers and mothers until the child’s eighth birthday.

Based on the findings of the survey, employees seek that guidance from their seniors. Even remote- or flexiworkers seek that ethos which allows for meaningful career advancement that lies at the core of a successfully executed diversity programme. Stereotypes that suggest that only women seek flexible working options, or that earning potential and professional development are undone by this kind of ethos.

Additionally, nearly sixty percent of employees felt that there was an equal opportunity imbalance at the organisation where they worked. Three out of four respondents felt that they are able to progress their careers and promote their skills in the workplace, while one out of three females felt that equally capable men had better career opportunities than their female counterparts.

By creating a culture of diversity and inclusion, new parents experience peace of mind, which encourages them to take the leave their families need them to take, and it ultimately makes the organisation more attractive to potential employees.

Close to 60% of men thought that their female colleagues received equal pay and rewards, while more than 80% of females disagreed.

ORGANISATIONS THAT SEEK TO IMPROVE THEIR INCLUSION AND DIVERSITY PROGRAMMES CAN USE THE FOLLOWING STEPS:

Fifty four percent of respondents agreed that prioritising inclusion programmes that help foster diversity and innovation is an important key in combating gender inequality in today’s modern workplace. Such programmes have been shown to create a more positive culture and boost morale.

1. Appoint a dedicated ‘diversity officer’ in your company. This person should take ownership of the company’s diversity programme and work as a champion to oversee its success.

Another Hays Ireland report found that 29% of individuals consider the diversity policy of a company before they apply for a job. However, 30% of male and 20% of female employees are unaware as to whether their organisation has a diversity policy. Sixty percent of respondents did agree that senior management should better communicate in order to raise awareness about diversity programmes.

2. Be sure to promote your company’s inclusion programme to your existing staff and also to new employees. 3. Ensure that employees’ fears regarding flexible working harming their prospects of career advancement are allayed. 4. Create a clear workflow for your company’s plans for professional development.

Nearly all respondents to the recent survey believe that inclusion and diversity include flexible working options, such as remote working and flexi-time. They feel that it benefits both employees and the company alike, and nearly half of them believe that it allows for women to be better presented in senior management roles.

By creating an innovative and dynamic workflow that improves morale and by removing gender inequality obstacles in the workplace, you can improve your organisation’s ability to attract and retain quality talent.

20,000 CONSUMERS URGED TO SWITCH AND SAVE ENERGY PROVIDERS Thousands of consumers have been encouraged to switch energy providers. Within days of expected energy price increases, a new campaign was launched to encourage consumers to switch energy and insurance providers to save on costs. This happened as a new energy provider Just Energy entered the market, which became the tenth Irish energy supplier.

Oliver Tattan, co-founder of One Big Switch hopes to help consumers save up to €300 a year by switching from standard gas and electricity to discounted offerings. In the last year, only 14% of consumers switched to a different energy provider. According to Tattan, a survey commissioned by Aviva found that approximately 1 million adults in Ireland the second-most expensive country in the EU - are facing financial difficulty.

From the beginning of November, SSE Airtricity customers will pay 5.6% more per unit of electricity. That means that the average consumer will pay €50 more per year for electricity. Bord Gáis Energy customers will pay 5.9% more per unit of electricity and 3.4% more per unit of gas as of November. As such, the average consumer will pay €57 more per year for electricity and €25 for gas.

Although Ireland’s economy has recovered somewhat, average earnings are increasing much slower than they did when employment was last as high as it is now. That means that we still have to save where possible, and saving on energy is a great way to do it. As such, Tattan and the One Big Switch campaign encourages people to shop around and hopes to create awareness around switching and unlocking offers that might help the Irish population.

Experts have warned consumers to expect more price increases, after the last three years, in which we paid record-low wholesale prices, and we’ve even seen some minor price cuts. In addition to the increases above, the levy on electricity bills - the Public Service Obligation (PSO) levy - also went up to €104,50 a year, which is a €25 increase.

Currently, One Big Switch has approximately 100, 000 members who use their combined buying power to negotiate discount offers on household bills.

The One Big Switch campaign hopes to entice thousands of people to join, in order to help negotiate reductions in energy as well as home and motor insurance for members through the power of combined buying power. The aim is to entice 20,000 members to join at onebigswitch.ie.

According to Eoin Clarke from Switcher.ie, Just Energy offers competitive gas deals which could help the average gas customer save as much as €147 compared to standard gas tariffs.

A STAKE IN THE COMPANY MIGHT JUST BE THE PERFECT COMPENSATION If you lack the funds to pay out large salaries, a share in the company may just sweeten the deal. Equity compensation is a valuable form of compensation, especially when you work at a tech start-up, mainly because of the sense of ownership it gives employees, and the potential monetary value of the equity shares.

Should the employee decide to sell the shares in three years’ time at €4 per share, s/he would have to pay 33% capital gains tax on the €30,000 gain, which delivers a 15.75% tax saving on the initial discount.

On Budget day, Paschal Donohoe (Minister for Finance, Public Expenditure and Reform) revealed plans to launch an employee share options scheme, the Key Employee Engagement Programme (KEEP), which was perceived as a small win for the SME and startup sector. KEEP is aimed at supporting small and medium enterprises in attracting and retaining key employees in the currently competitive labour market by providing advantageous tax treatment on share options. KEEP helps SMEs to provide key employees with financial incentives that are aligned with the success of the company.

While financially well-off employees tend to be happy and motivated, many highly experienced employees would gladly stray from their career paths to join a tech start-up that offers share options as part of their remuneration packages. Companies such as Facebook have turned many employees into millionaires by offering share options that attracted their highly valued initial talent. California-based biotechnology giant Genetech rewards two thirds of their top performing employees with share options every year. Share options have been shown to be a powerful motivational tool to help tune wealth-driven employees into the long-term success of a company, as illustrated by the shining success of these and other Silicon Valley companies.

Michael Noonan, Donahue’s predecessor flagged the new share-based remuneration incentive at last year’s Budget speech, and it is expected that KEEP will be formally introduced at the start of 2018.

By giving employees shares, an employer can ensure that the employee aligns his or her financial interests with that of the company. When they own a stake of a company, employees will feel a stronger connection to the company, which is exactly what a company needs during the early stages.

Shares have been around for many years, particularly in large multinational organisations, but current taxation rules dictate that employees may be lumbered with sizable tax bills. Additionally, unless the taxman approves the share option scheme, income tax will be due on the discount the employee receives on acquisition of the shares. Employees will therefore have to pay the tax bill out of their own pocket, unless they sell some of the acquired shares.

However, experts caution companies not to give away too much ownership. Without proper planning, over-exuberant founders may give away too large a piece of the pie. A share based compensation scheme may therefore become a problem when founders decide to sell the company, as many buyers will only be interested if they can own all the stock in the company.

The new scheme, however, will mean that the value of the benefit will not be subject to tax until the employee sells the shares. Shares will however still be taxed at the 33% capital gains tax rate. Budget submissions from business groups have sought to lower this to 20%. An example from the Government proposed that an employee was given the option to buy 10,000 shares at €10,000 in 2018. The employee exercised the option in 2021, at which point the shares were worth €3 each. This would give the employee a €20,000 discount based on the shares’ market value and s/he would not have to pay the income tax (approximately 40%) that would have been applicable previously.

Jim McCarthy

Sean McSweeney

Managing Partner

Partner

Jim has been a qualified accountant and a member of the Institute of Certified Public Accountants for over 20 years. In 2013 Jim along with Sean McSweeney formed MC2 Accountants. Jim provides investment and wealth management advice for high net worth clients. He offers innovative solutions in debt restructuring and specialises in the sourcing and creation of high value property opportunities to build and enhance portfolios.

Sean McSweeney co-founded MC2 Accountants with business partner Jim McCarthy in 2013. Sean is a specialist in tax consultancy and business advisory services and advises in a number of sectors including retail, hospitality, healthcare and IT. He has over 10 years’ practical experience in all areas of taxation. Previously he worked with KPMG, Deloitte, McGuire Desmond Solicitors and Quintas. Sean is an Associate of the Irish Tax Institute and Chartered Accountants Ireland.

Pamela Murphy

KENNY KANE

DIRECTOR - Accounting and Auditing

Director- Corporate Finance

Pamela Murphy is a Director and head of the Accounting and Audit department of MC2 Accountants. She has over 14 years’ experience working in accounting, tax advisory and compliance and specialises in the SME, Medical and Private Client sectors. Her key strengths are her extensive experience in all facets of Accounting and Tax, which offers a unique pairing to clients in creating optimal accounting and tax solutions. Pamela is a Chartered Tax Adviser with the Irish Tax Institute and a Fellow with the Association of Chartered Certified Accountants.

Kenny joined MC2 Accountants in September 2015. His role involves sourcing and executing property transactions with a focus on the Cork market. In addition he works as part of the Corporate Finance and Taxation and Private Clients teams in Debt Restructuring and Structured Finance. Kenny holds a BFS from UCD. His experience includes sourcing and analysing Property investments, debt and equity structures, active asset management and distressed debt workout programmes.

Jennifer Vaughan

Sam Russell

Finance Director

Director - Corporate Finance

Jennifer Vaughan is the Finance Director of MC2 Accountants, while also managing the day to day running of the practice and providing outsourced accounting and finance services to clients. Jennifer has a broad range of experience, beginning her career in industry before moving to Quintas as the Group Financial Accountant for the Accountancy Practice, Business Centre and Wealth Management Entities. Jennifer qualified as a Certified Public Accountant (CPA) in 2008.

Sam is a Fellow of the Institute of Chartered Accountants in Ireland, with further qualifications in Project Management, People Management and Training & Development. Sam has a broad range of international experience having previously worked within Big 4 Irish and Top 10 UK practices. He has particular experience in the Hotel sector having acted as asset manager for a €50m revenue European hotel portfolio for a number of years. Sam has also held Financial Controller roles in the manufacturing, retail and hospitality industries. Sam has extensive commercial and transaction experience and is well versed in managing both Irish and European banking and legal issues.

SERENA COTTeR

RUTH HOULIHAN

SENIOR MANAGER CORPORATE FINANCE

Director - Accounting and Auditing Serena is a Director in the firm’s Accounting and Audit and Business Advisory Department. She is a qualified Chartered Certified Accountant, a qualified Tax Advisor and a member of the Irish Tax Institute. She previously ran her own practice for 10 years and subsequently joined MC2 Accountants in 2014. Serena provides business advisory services, tax planning, financial reporting and accountancy services. Her key strengths are providing effective solutions and financial sustainability for distressed companies and sole traders

Ruth joined the Corporate Finance department in February 2016. Her role is focused on providing advice to SME and Corporate clients across a number of different areas. The role involves assisting with corporate debt restructuring, capital and debt fundraising along with business valuations and financial modelling. Prior to joining MC2 Accountants, Ruth worked with Bank of Ireland for more than 10 years.

Padraig Cronin

Richard Horgan

Senior Manager Accounting and Audit

Padraig is a qualified Chartered Accountant and has extensive experience in providing clients with a wide range of financial services such as auditing, accounts preparation, management accounts, bookkeeping and preparation and submission of tax returns for VAT, PAYE, RCT, Income Tax and Corporation Tax.

Richard joined MC2 Accountants in September 2014 and has in excess of ten years’ experience. He is a qualified Chartered Accountant and holds a masters and honours degree in accounting. His role focuses on the provision of accounting services including audit compliance, accounting and financial reporting, personal and corporate taxation and financial management.

AOIFE MURRAY

Margaret Dinan

Senior Manager – Taxation and Private Clients

Senior Manager Accounting and Audit

Aoife provides comprehensive tax planning and consultancy advice for business and individuals across all tax areas. Aoife obtained a Bachelor of Commerce (International) Degree from the National University of Ireland, Galway and holds a Master of Accounting (Hons) from Smurfit Business School, Dublin. Aoife is an Associate of the Irish Tax Institute and of Chartered Accountants Ireland.

Margaret Joined MC2 Accountants in August 2017 as part of the Accounting & Audit Department as Senior Manager.Margaret has over nine years’ experience and works on a range of accountancy services including audit compliance, accounts preparation and financial reporting.Margaret obtained an honours bachelor degree in business from Cork Institute of Technology in 2008. She is a qualified charted accountant with the Institute of Chartered Accountants (ACA). Prior to joining MC2 Accountants, Margaret worked with PwC, Cork and with Baker Tilly Ryan Glennon in their Dublin office.

Stephen Parker

Ciara O Leary

Manager – Corporate Finance

Qualified Accountant

Stephen holds a Masters in Financial Economics and a Bachelor’s Degree in Business (Hons). He is also a Qualified Financial Advisor (QFA) and a qualified ACCA accountant. Stephen provides support across a number of varying areas including debt restructuring, property transactions and independent business reviews.

Ciara joined MC2 Accountants in May 2016 as a Qualified Chartered Accountant (ACA). Ciara’s role includes the preparation of annual financial statements, filing personal and company tax returns. Ciara holds a Bachelor of Social Science Degree and a Higher Diploma in Accounting and Corporate Finance from University College Cork. Prior to joining MC2 Accountants she worked with Ernst & Young (EY) in Cork.

CONOR MCCARTHY

Craig Horgan

QUALIFIED ACCOUNTANT

Qualified Accountant

Conor joined the firm in August 2015. Conor’s role includes the preparation of management accounts and accountant management. Conor is a Qualified Chartered Accountant and holds a Bachelor of Commerce (Hons) Degree from UCC. Prior to joining MC2 Accountants he worked with Crowley McCarthy, where he dealt with sole traders, partnerships and audit exempt companies.

Craig joined MC2 Accountants in August 2014 as a Trainee Accountant. He holds a First Class Honours Bachelor of Business (Honours) in Accountancy from Cork Institute of Technology. Craig became a qualified ACCA Accountant in November 2016, passing all exams successfully at the first attempt. Craig’s main responsibilities include the preparation of audit and non-audit engagements, completion of PAYE/VAT/Income Tax & Corporation Tax returns, liaising with clients and participating in the training of junior staff members.

RANGE OF SERVICES ACCOUNTING AND AUDIT

BUSINESS ADVISORY SERVICES

•• •• •• •• •• •• ••

Accounting System Review Bookkeeping Budgeting CRO Compliance Financial Statements International Business Statutory Audits: -- Charitable Organisation -- Group -- Internal -- Pension Group -- Regulated Entity -- Statutory •• Taxation Advice

•• •• •• •• •• •• •• •• •• •• •• •• •• ••

CORPORATE FINANCE

TAXATION AND PRIVATE CLIENTS

•• •• •• •• •• •• •• ••

•• Tax Advisory Services •• Tax Compliance Services •• Private Clients

Asset Management Corporate Restructuring & Debt Advisory Funding Solutions - Capital, Debt, EIIS & Mezzanine Finance M&A Advisory Real Estate Advisory Strategic Advisory Transaction Advisory & Execution Report Business Valuations and Financial Modelling

Budget Forecasting Business Development Company Secretarial Due Diligence Review Forensic Accounting Grant Applications Internal Control Review International Business KPI Assessment Management Accounts Outsourced Business Services Overhead Analysis Payroll Strategic & Financial Planning

TRANSACTIONS

Visit us at: MC2Accountants.ie MC2 Accountants, Penrose Wharf, Penrose Quay, Cork

info@MC2group.ie Tel: 021 486 1486 Fax: 021 486 1487