Matthew Elderfield
Encyclopedia
Matthew Elderfield is the Head of Financial Regulation at the Central Bank of Ireland, a position better known as the Financial Regulator. He is the former chief executive of the Bermuda Monetary Authority
(BMA).
He was at asked at a parliamentary committee "In regard to baseline qualifications, if your staff is regulating the financial sector, should it not be the case where they should have the bare minimum required in the market as well, a qualified financial adviser status, or they've gone through certain industry exams. It's obviously important to have." But Mr Elderfield disagreed: "I don't agree with that. But I think I'm conflicted because I've never taken a professional exam in my life."
by significantly increasing staff numbers, expanding the BMA’s learning and development programme, and introducing a scoring system for management.
Prior to joining the BMA, Elderfield spent eight years at the UK Financial Services Authority
(FSA) as a head of a number of departments responsible for exchange and clearing-house supervision of secondary markets, listing policy and for banking supervision. He was the official responsible for supervising Northern Rock
in the months before the collapsed bank applied for its first bailout. He represented the FSA on the Basel Accord Implementation Group and chaired the FSA panel responsible for economic capital model review.
Before joining the FSA, Elderfield established the European operation of the International Swaps and Derivatives Association
(ISDA) and held position at the London Investment Banking Association, the British Bankers Association and a Washington DC-based consultancy firm, the Institute for Strategy Development.
Elderfield earns an annual salary of €340,000 a year compared compared to a salary of $730,000 (€533,000) in Bermuda. and is at his desk from 7.30am to 7pm on weekdays while working a half day on Sundays.
. He succeeded Patrick Neary, who retired early over the handling of the regulator's investigation into the €87 million in secret directors' loans
at Anglo Irish Bank
. Minister for Finance
, Brian Lenihan
welcomed his appointment, saying: "The appointment of Mr Elderfield, particularly given his extensive international regulatory experience, is a key step in the restructuring of financial services regulation in Ireland." He took up his position in January 2010. He has been tasked with the rebuilding of the financial regulators function and restoring its reputation, overseeing the recapitalisation of the banks, helping to wean them off the funding support of Government guarantees, match Ireland’s regulatory changes with the raft of measures coming internationally, and strike a measured balance in his approach to maintain a competitive position for the Irish financial services sector at a global level. Mr Elderfield said he intended to pursue a policy of 'assertive' regulation, backed up by the credible threat of enforcement. An Irish Times poll suggests that he is meeting success in restoring credibility to the Financial Regulators office with 68% responding positively. In April 2010 he said that there was "critical absence of intellectual firepower within his staff
at the end of March 2010, the regulators office announced under the Government’s guarantee scheme must now meet a core equity ratio of 8 per cent by the end of 2010. This is to ensure that they can withstand future losses.
of companies. According to the Irish Independent
, eight subsidiaries of Quinn Insurance provided guarantees of €1.2bn to cover Quinn Group’s debts, prompting the regulator to seek the appointment of provisional administrators in the High Court. The Quinn Group took action to counter the moves by the Financial Regulator, mobilising its employees into street protests, financial discussions with its creditors, in an effort to seek a resolution to the uncertainty created by the appointment of provisional administrators to Quinn Insurance. On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator. This was following a direct challenge by Elderfield to the groups owner, Irelands former richest man, Sean Quinn
, to "Show me the money" that would have solved the financial difficulties.
, Dublin.
Bermuda Monetary Authority
The Bermuda Monetary Authority is the financial regulatory agency for Bermuda.It is responsible for the licensing of companies proposing to carry on the business of deposit taking , insurance, trusts, investment funds, money service, and investment business in Bermuda; the issue and redemption of...
(BMA).
Education
Elderfield graduated from Cambridge University in 1988 with a master’s degree in International relations, and earned a bachelor’s degree in foreign service, cum laude, from the School of Foreign Service, Georgetown University in 1987.He was at asked at a parliamentary committee "In regard to baseline qualifications, if your staff is regulating the financial sector, should it not be the case where they should have the bare minimum required in the market as well, a qualified financial adviser status, or they've gone through certain industry exams. It's obviously important to have." But Mr Elderfield disagreed: "I don't agree with that. But I think I'm conflicted because I've never taken a professional exam in my life."
Career
Elderfield was Chief Executive of the Bermuda Monetary Authority (BMA, the financial services sector in Bermuda) from July 2007. During his two years as head of the financial regulator in Bermuda, Elderfield introduced reforms to strengthen the island’s reputation for international insurance, banking and fund management. He strengthened regulation in BermudaBermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
by significantly increasing staff numbers, expanding the BMA’s learning and development programme, and introducing a scoring system for management.
Prior to joining the BMA, Elderfield spent eight years at the UK Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
(FSA) as a head of a number of departments responsible for exchange and clearing-house supervision of secondary markets, listing policy and for banking supervision. He was the official responsible for supervising Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
in the months before the collapsed bank applied for its first bailout. He represented the FSA on the Basel Accord Implementation Group and chaired the FSA panel responsible for economic capital model review.
Before joining the FSA, Elderfield established the European operation of the International Swaps and Derivatives Association
International Swaps and Derivatives Association
The International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives....
(ISDA) and held position at the London Investment Banking Association, the British Bankers Association and a Washington DC-based consultancy firm, the Institute for Strategy Development.
Elderfield earns an annual salary of €340,000 a year compared compared to a salary of $730,000 (€533,000) in Bermuda. and is at his desk from 7.30am to 7pm on weekdays while working a half day on Sundays.
Appointment as financial regulator in Ireland
Elderfield was appointed in October 2009 by the Governor of the Central Bank, Patrick HonohanPatrick Honohan
Patrick Honohan is an economist who was appointed Governor of the Central Bank of Ireland in September 2009. Among his main tasks are the challenge of helping to resolve the 2008–2010 Irish banking crisis. He is married with one son.-Education:Honohan graduated with a B.A...
. He succeeded Patrick Neary, who retired early over the handling of the regulator's investigation into the €87 million in secret directors' loans
Anglo Irish Bank hidden loans controversy
The Anglo Irish Bank hidden loans controversy began in the Republic of Ireland in December 2008 when the chairman of Anglo Irish Bank, Ireland's third largest bank, admitted he had hidden a total of €87 million in loans from the bank, triggering a series of incidents which led to the eventual...
at Anglo Irish Bank
Anglo Irish Bank
Anglo Irish Bank was a bank based in Ireland with its headquarters in Dublin from 1964 to 2011. It went into wind-down mode after nationalisation in 2009....
. Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...
, Brian Lenihan
Brian Lenihan, Jnr
Brian Joseph Lenihan was an Irish Fianna Fáil politician and barrister who served in the government of Ireland as Minister for Justice, Equality and Law Reform from 2007 to 2008 and as Minister for Finance from 2008 to 2011...
welcomed his appointment, saying: "The appointment of Mr Elderfield, particularly given his extensive international regulatory experience, is a key step in the restructuring of financial services regulation in Ireland." He took up his position in January 2010. He has been tasked with the rebuilding of the financial regulators function and restoring its reputation, overseeing the recapitalisation of the banks, helping to wean them off the funding support of Government guarantees, match Ireland’s regulatory changes with the raft of measures coming internationally, and strike a measured balance in his approach to maintain a competitive position for the Irish financial services sector at a global level. Mr Elderfield said he intended to pursue a policy of 'assertive' regulation, backed up by the credible threat of enforcement. An Irish Times poll suggests that he is meeting success in restoring credibility to the Financial Regulators office with 68% responding positively. In April 2010 he said that there was "critical absence of intellectual firepower within his staff
Capital requirements for banks
Following the transfer of loans to NAMANational Asset Management Agency
The National Asset Management Agency is a body created by the Government of Ireland in late 2009. It is in response to the Irish financial crisis and the deflation of the Irish property bubble....
at the end of March 2010, the regulators office announced under the Government’s guarantee scheme must now meet a core equity ratio of 8 per cent by the end of 2010. This is to ensure that they can withstand future losses.
Appointment of administrator to Quinn Insurance
On 30 March 2010, following an application by the Financial Regulators office, the High Court appointed joint provisional administrators to Quinn Insurance Limited, part of the Quinn GroupQuinn Group
The QUINN group is a business group headquartered in Derrylin, County Fermanagh, Northern Ireland. The privately owned group has ventured into cement and concrete products, container glass, general insurance, radiators, plastics, hotels, and real estate...
of companies. According to the Irish Independent
Irish Independent
The Irish Independent is Ireland's largest-selling daily newspaper that is published in both compact and broadsheet formats. It is the flagship publication of Independent News & Media.-History:...
, eight subsidiaries of Quinn Insurance provided guarantees of €1.2bn to cover Quinn Group’s debts, prompting the regulator to seek the appointment of provisional administrators in the High Court. The Quinn Group took action to counter the moves by the Financial Regulator, mobilising its employees into street protests, financial discussions with its creditors, in an effort to seek a resolution to the uncertainty created by the appointment of provisional administrators to Quinn Insurance. On 15 April 2010, the Irish Times reported that Quinn Insurance decided not to fight the appointment of a permanent administrator. This was following a direct challenge by Elderfield to the groups owner, Irelands former richest man, Sean Quinn
Seán Quinn
Seán Quinn is an Irish businessman and conglomerateur, now bankrupt. In 2008 he was the richest person in Ireland, but he now has debts...
, to "Show me the money" that would have solved the financial difficulties.
Personal
He is a British citizen and is married. His interests are cycling, Leeds United, music and lives in SandymountSandymount
Sandymount is a coastal seaside suburb in Dublin 4 on the Southside of Dublin in Ireland. It is in the Dublin South East Dáil constituency and the East Pembroke Ward. It was once part of Pembroke Township, which took its name from the fact that this area was part of the estate of the Earl of...
, Dublin.
External links
See also
- Irish property bubbleIrish property bubbleThe property bubble in the Republic of Ireland began in 2000 and peaked in 2006, as with many other western European countries, with a combination of increased speculative construction and rapidly rising prices....
- 2008–2009 Irish financial crisis2008–2009 Irish financial crisisThe 2008–2011 Irish financial crisis, which had stemmed from the financial crisis of 2008, is a major political and economic crisis in Ireland that is partly responsible for the country falling into recession for the first time since the 1980s...