Brexit Stakeholder Event

When 07 June 2018 4:30 PM
Where Columba Suite, The Spencer Hotel, Excise Walk, IFSC, Dublin 1

Brexit Stakeholder Event

Following on from the Brexit roundtable meetings of 2017, the Central Bank is hosting a Brexit Stakeholder Event on 7 June 2018. The event is an opportunity for industry attendees to engage with members of the Bank’s senior team on Brexit-related topics. Particular focus will be on relocation issues and the preparedness of the Irish financial sector. The event will consist of two panels made up of senior representatives of the Central Bank of Ireland, chaired by Ed Sibley, Deputy Governor, Prudential Regulation and Derville Rowland, Director General, Financial Conduct.

Registration is at 16:00.

Please note, attendance at this event is by invitation only.

Summary of issues discussed

The event was hosted by the Central Bank of Ireland and consisted of two panels made up of senior representatives of the Central Bank of Ireland, chaired by Ed Sibley (Deputy Governor, Prudential Regulation) and Derville Rowland (Director General, Financial Conduct).

Particular focus was given to Brexit-related issues such as relocation and preparedness.

Relocation issues

Panel members provided an overview of the key issues regarding relocation and authorisation. Key points included the importance of firms seeking authorisation in Ireland to apply early as the Central Bank is experiencing a high level of Brexit-related authorisations. Also, that many applications represent large institutions, with complex business models which would add to the scale and complexity of the financial services market in Ireland. Panel members noted the importance of having credible and trusted regulatory frameworks, especially as the financial services sector expands and deepens in Ireland. 

The role and use of technology and data can be expected to become increasingly important as the complexity of the financial services sector grows. Panel members noted that a number of initial applications lacked sufficient substance, and that missing or incomplete information tends to delay the authorisation process. Panel members emphasised the importance of early and ongoing engagement with the Central Bank during the application process in order to reduce any delays. One of the risks identified is not having in place the right configuration of local capacity to ensure that the responsibility and oversight of certain business activities can be properly assured from the point of view of Irish regulatory requirements.

Preparedness issues

Panel members provided an overview of the key issues regarding preparation and addressed topics including supervisory relations, cliff effects, and the role of the European Supervisory Authorities (ESAs). Points raised include the wider economic impacts of Brexit on Ireland which are expected to be negative, and uncertainty as to future arrangements. Concerning regulated firms’ preparedness for the risk of a hard Brexit in March 2019, the Central Bank is seeing a mixed picture; while a range of firms have good contingency planning in place, many do not and are not currently meeting expectations in this regard. Firms need to focus clearly on the potential dislocations and cliff effects that might impact their business and have clear plans to address these risks. The Central Bank continues to engage actively with the ESAs and as part of the Single Supervisory Mechanism on a range of relevant issues in order to help reduce some of the risks around Brexit, including regulatory arbitrage and supporting consistency in regulatory frameworks across the EU.

More generally, the departure of the UK from policymaking fora in the EU gives rise to challenges which need to be considered. Work is underway to ensure that the Central Bank has the right level of resourcing to be fully committed in dealing with the Central Bank’s responsibilities under European policy frameworks in financial regulation in order to influence European norms and approaches.

The Central Bank remains committed to continue its engagement with industry and to be open as possible about our analysis of the risks that we have identified in order to help businesses prepare for the future. We will continue our monitoring and assessment of Brexit impacts and intend to hold other similar stakeholder events in the future.