Central Bank of Ireland publishes roadmap to deliver a more effective and efficient regulatory framework

• New report outlines the Central Bank’s approach to more effective and efficient regulatory and supervisory framework, reducing complexity and improving clarity while maintaining resilience and important protections in the system.
• This work builds on the Central Bank’s strategy to transform regulation and supervision, including the introduction of our new integrated supervisory approach and the improvements made in our gatekeeping processes in recent years. The roadmap sets out a comprehensive multi-year programme of initiatives to deliver further efficiencies and effectiveness across regulation, supervision, gatekeeping and reporting.  
• While proactively engaging in this work, the Central Bank have been clear we are not reducing standards or supervision, and will continue to respond to the changing financial system and risk landscape.

Central Bank of Ireland today published “Regulating & Supervising Well – A More Effective and Efficient Framework (PDF 440.55KB)”.

The report outlines how the Central Bank will, in line with initiatives across Europe, enhance the effectiveness and efficiency of its supervision and domestic regulatory framework, improve gatekeeping processes, and deliver a more integrated and less burdensome reporting and data framework. These initiatives form part of a multi-year programme aligned with the Central Bank’s strategic commitment to transform regulation and supervision in a rapidly changing financial environment.

Governor Gabriel Makhlouf said: “A well-functioning financial system is essential to a well-functioning economy. As Europe focuses on improving competitiveness and resilience, there is a clear opportunity to streamline rules and processes without weakening the important protections we have built over the past decade.

“Our objective is straightforward.  We are making regulation and supervision more effective, easier to navigate, proportionate, and aligned with risk, while maintaining the resilience and safeguards that underpin people’s trust in the financial system.

“Streamlining is not about lowering standards. It is about improving quality, coherence and clarity, ensuring the regulatory framework works for consumers, firms and the economy.”

The report outlines the Central Bank’s work across four pillars:

Supervision

The Central Bank’s new integrated, risk-based supervisory approach, introduced earlier this year (PDF 324.62KB), brings together multidisciplinary teams, sharper risk focus, and clearer supervisory communications. This delivers more coherent engagement with firms, stronger proportionality and streamlined supervisory processes.

Regulation

The Central Bank is updating its domestic rulebook, retiring or consolidating outdated provisions, and aligning national requirements with evolving EU frameworks. Some key initiatives include:

• A major compatibility review of insurance regulations to eliminate duplication with Solvency II reforms;
• In addition to international work, review domestic banking rules that pre-date CRD V/CRR;
• Following simplification of the Credit Union Lending Framework, updating the Credit Union Handbook
• Changes to the AIF rulebook and UCITS regulation and a full review of the Fund Service Provider Framework;
• Updated cross-sectoral guidance on operational resilience, outsourcing and governance.
• A new Regulatory Impact Assessment Framework

Gatekeeping

Building on improvements already delivered, including shorter processing times and clearer expectations, the Central Bank will establish a Gatekeeping Division to further enhance consistency, transparency and timeliness across authorisations and Fitness & Probity processes.

Reporting and Data

The Central Bank is undertaking a comprehensive review of domestic reporting requirements, introducing a discipline-by-design model to ensure all data collections are purposeful, proportionate and non-duplicative. This work aligns with European initiatives to streamline bank reporting and reduce unnecessary burden.

Mary-Elizabeth McMunn, Deputy Governor. Financial Regulation stated: “The financial system is evolving rapidly, and regulation must evolve with it. As part of our work, we have engaged with and listened to feedback from stakeholders, including the financial services sector.  Our focus is on being risk-based, future-focused and outcomes-driven, ensuring firms understand what is expected, and that our frameworks support sustainable innovation and growth.

“Success will be a regulatory system that is clearer, more coherent and more proportionate, while continuing to protect consumers, investors, and hard-won financial stability.  We will continue to engage in robust risk-based supervision; and to take enforcement action as necessary; and if changes to the risk landscape mean we have to introduce new rules or requirements, or engage more with firms or sectors, we will do so.

“Regulating and supervising well is an ongoing commitment from the Central Bank, and we will continue to adapt as risks, markets and technologies evolve.”

ENDS